Diesel drought stalls lighter vessels, slows cargo unloading at Ctg port

Highlights:

• Diesel shortage halts lighter vessels, disrupting Chattogram Port operations
• Cargo unloading delays double turnaround times, raising import costs
• Supply-demand gap widens as imports rise, fuel supply lags
• Idle vessels incur heavy losses, increasing demurrage charges
• Coal transport delays threaten power generation and energy security
• Stakeholders urge urgent action to resolve fuel supply crisis

A worsening diesel shortage has brought lighter vessel operations at Chattogram Port to a near standstill, choking cargo unloading from mother vessels at the outer anchorage and disrupting supply chains across the country.

Industry operators say the crisis has significantly reduced the movement of goods, increased import costs and raised fears of shortages of essential commodities and energy inputs.

Infograph: TBS

Despite repeated appeals to the energy ministry and several coordination meetings, the Bangladesh Petroleum Corporation has yet to take effective steps to ease the diesel shortage, stakeholders alleged.

Although the corporation says it is supplying fuel in line with last year's demand, industry representatives say imports have risen markedly this year, widening the gap between supply and demand. Higher imports mean more vessel movements, but fuel supply has not kept pace, leading to delays in lighter vessel operations.

The government, however, reiterates that Bangladesh is not facing any fuel shortage, even as the ongoing conflict in the Middle East disrupts global energy markets, maintaining that overall supply remains stable and manageable.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit yesterday said Bangladesh currently has the highest-ever fuel stock to meet the demand.

"Bangladesh currently has sufficient fuel stock to meet the demand for April and May, while steps are underway to ensure uninterrupted supply for June," he said during a visit to Eastern Refinery Limited (ERL) in Chattogram.

Energy Minister Iqbal Hasan Mahmud Tuku earlier noted that supply constraints at times stem from logistical delays rather than a lack of fuel. Ministry officials also pointed to a sudden spike in demand as a factor behind the shortages.

Cargo unloading delays mount

Cargo unloading has slowed to a crawl, with typical 15-day turnaround times nearly doubling to a month. As a result, importers are facing staggering demurrage charges of up to $300,000 per vessel – costs that are likely to be passed on to consumers. 

This diesel-driven crisis has also affected coal handling, as operators struggle to secure the lighter vessels essential for supplying fuel to the nation's power plants. What was once a 32-to-38-hour transport cycle now stretches up to eight to ten days, leaving a massive backlog at the outer anchorage.

The delays are also affecting about 80 mother vessels carrying a wide range of imports, including clinker, food grains and poultry feed, adding to inflationary pressure in domestic markets.

One example is the vessel MV GM Fortune, which arrived at the outer anchorage on 16 March carrying 50,868 tonnes of soybean seed. Even after a month, about 2,900 tonnes remained on board, pushing the vessel's turnaround time to 32 days – more than double the usual duration.

"Without fuel, vessels cannot operate on schedule. That is directly increasing turnaround time for mother vessels," said Parvez Ahmed, spokesperson for the Bangladesh Water Transport Coordination Cell.

Idle vessels, rising losses

The shortage has left many vessels stranded and unable to load or unload cargo. Operators estimate daily losses for idle vessels at between $20,000 and $50,000, depending on their size.

Saiful Alam, deputy general manager (shipping) at Nabil Group, said the company currently has nine ships waiting at the anchorage.

"Each day we require at least 18 lighter vessels, but we receive about 10 after a delay of two to three days. Even then, many fail to arrive on time due to fuel shortages," he said, adding that demurrage costs reach $25,000 per vessel per day.

Jahangir Alam, owner of ANJ Trading, said his company was allocated around 60 vessels between 2 and 14 April but managed to secure only 50,000 litres of diesel against a requirement of more than 150,000 litres.

The crisis is also being compounded by wider logistical constraints.

Stakeholders say coordination meetings, once held daily, are now taking place every three to four days, adding to uncertainty. Shortages of trucks at unloading points are further slowing cargo clearance, while inconsistent fuel supply means even partially loaded vessels struggle to reach their destinations on time.

Risks to energy supply

The disruption is now spilling into the energy sector.

Bangladesh relies heavily on imported coal for power generation. Operators warn that continued delays in transporting coal from the outer anchorage could disrupt electricity production.

A senior official at a logistics firm handling coal shipments said only three to four lighter vessels are currently available each day, compared with a requirement of eight to ten.

"As a result, coal transport has slowed over the past two weeks. This could disrupt power generation if the situation persists," the official said, requesting anonymity.

Calls for urgent action

Industry stakeholders are urging immediate government intervention to ensure an uninterrupted fuel supply for lighter vessels. They say decisions taken at earlier ministry-level meetings remain unimplemented, prolonging the crisis.

"Without swift action, the entire logistics chain will remain under pressure," BWTCC Spokesperson Parvez warned, adding that prolonged delays could discourage foreign vessels from calling at Bangladeshi ports and further increase import costs.

Director General of Shipping Commodore Shafiul Bari acknowledged the shortage, noting that a typical lighter vessel requires 3,000 to 4,000 litres of diesel for a single voyage from the outer anchorage to Narayanganj.

"Dealers are supplying only 1,500 to 2,000 litres – about half the requirement. As a result, vessels cannot complete trips, creating the current bottleneck," he said.

He added that while the Bangladesh Petroleum Corporation says it is supplying fuel in line with last year's demand, imports have increased significantly this year, widening the gap.

An inter-ministerial committee has been formed to address the issue, Shafiul said, expressing hope for a resolution soon.

Officials at BPC could not be reached for comment.

Stakeholders warn that unless the problem is resolved quickly, the crisis could have lasting consequences for trade flows, energy security and price stability.