Ports are congested and containers are piling up

Over the past week, student protests in Bangladesh have triggered a chain reaction, resulting in highway blockages, curfews and limited internet services. This series of events has had a serious impact on the Chittagong port, where nearly 40,000 standard containers are currently piled up at the port terminal, mainly loaded with imported goods that need to be processed.

For importers, the situation is even more serious. According to port regulations, huge demurrage fees are incurred when containers stay in the port yard for more than four days. Specifically, a 20-foot container is charged $6 per day from the fifth day, $12 after 12 days, and the fee increases over time to $24 after the 21st day; the fee for a 40-foot container is twice the above standard. This is undoubtedly another heavy blow on top of the huge economic losses caused by factory closures and shipment delays. 

To reduce the burden on companies, the Federation of Bangladesh Chambers of Commerce and Industry and the Chittagong Chamber of Commerce and Industry have called on the government to waive demurrage fees. Last Wednesday, the former even made it clear that demurrage fees would be waived within the week and all new fees would be suspended within 15 days after the port operations resumed normal. 

For importers, the situation is even more severe. According to port regulations, huge demurrage fees are incurred when containers stay in the port yard for more than four days. Specifically, a 20-foot container is charged $6 per day from the fifth day, $12 after 12 days, and the fee increases over time, reaching $24 after the 21st day; the fee for a 40-foot container is twice the above standard. This is undoubtedly another heavy blow on top of the huge economic losses caused by factory closures and shipment delays.

In order to reduce the burden on enterprises, the Federation of Bangladesh Chambers of Commerce and Industry and the Chittagong Chamber of Commerce and Industry have called on the government to waive demurrage fees. Last Wednesday, the former even made it clear that demurrage fees would be waived within the week and all new fees would be suspended within 15 days after the port operations resumed normal.