Ship turnaround now faster but customs delays choke Ctg Port

In a fresh setback to Bangladesh's supply chain, port congestion is now moving from the sea to the shore, undermining recent gains in ship turnaround times. Chattogram Port, having successfully reduced container vessel waiting times, is now grappling with a new bottleneck: customs delays.

Container vessels no longer have to spend days idling at sea before berthing in Chattogram, thanks to newly dedicated berths that have slashed waiting times and cut daily demurrage bills by $15,000–$20,000 per ship. 

Since the New Mooring Container Terminal came under the supervision of Bangladesh Navy-run Chittagong Dry Dock Limited early last month, the port's container-handling capacity has risen, and ship turnaround time has dropped from five days to just two.

However, this progress is being stifled by hold-ups at customs. The port yard is currently over 90% full, with 48,541 twenty-foot equivalent units (TEUs) out of a total capacity of 53,518 TEUs as of the morning of 19 August. Officials warn that the port needs 15-20% of its yard space to remain vacant for smooth operations.

The primary cause of the customs backlog is a critical shortage of working scanners. Four of the port's nine scanners were out of order, severely hindering the movement of import containers.

This has created a domino effect, preventing trucks from backloading imports after delivering exports, and causing containers to pile up at inland depots.

Infographics: TBS

"Depot owners cannot take import containers as swiftly as expected because of inoperational scanners," said Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depot Association. "As a result, trucks carrying export goods are returning empty instead of backloading imports."

He added that 76,000 containers are now stuck across 21 off-docks, including 60,000 empties, which are also clogging ICD operations.

Joint Commissioner at the Chattogram Customs House, Tafsir Uddin Bhuiyan, claimed that two of the scanners had been fixed while two others remained inoperational. "Few parts need to be imported to fix them, which may take time to follow due process."

Customs has long failed to clear over 10,000 containers – some lying for more than 20 years – occupying over 20% of the port yard's space. Despite repeated letters from port authorities, customs has taken no action.

Regarding the stockpile of those auctionable containers, the official said, "The government passed a new order withdrawing the provision for covering 60% of the assessed value. So, we can now clear the goods in the first auction. We have a plan to clear 250-300 TEUs every month."

Chattogram Custom House spokesperson and Deputy Commissioner HM Kabir said, "As handling increases, we are also under some pressure to deliver. We need coordination on some issues to clear the present congestion."

How customs delays are costing industries

Not a mechanical glitch alone, procedural delays also make users suffer.

Yasir Arafat, owner of Warka and Jobaer Agro Industry Limited, could not release 27.5 tonnes of pink salt he imported last month as a raw material for his factory. After completing all customs procedures, he paid the required tax on 12 August. A deputy commissioner at Chattogram Customs House halted the consignment, saying it required further verification. The official was transferred, a new one took charge and started verification afresh. And the container still remains stuck.

"It usually takes 4-5 days to clear an import consignment. But this time, they took 13 days to verify and process the file. Even after paying the taxes and duty, the authorities are not clearing my container," Arafat told The Business Standard. "My factory has been closed for the last week due to a shortage of raw materials. If they do so, how can we do business here?"

Asked about Arafat's suffering, customs official HM Kabir said that if they get any complaints on harassment or unnecessary delay of delivery of goods, they will look into the issues.

Mahfuzul Hoque Shah, former director of the Chattogram Chamber of Commerce and Industry, said: "The port operates round the clock, but customs does not keep pace. They hold up files to realise a bribe from the importers. The government must strengthen the customs authority with more manpower and curb corruption to ease the clearance process."

Kazi Mahmud Imam, former general secretary of the Clearing and Forwarding Agents Association, added: "Normally, after completing customs formalities, a container clears in four to five days. If lab tests are needed, it can take 15-20 days. But importers face severe harassment during clearance, which fuels congestion."

He urged upgrades to lab facilities and more recruitment to speed up clearances.

Business leaders argue the fixes must go beyond berthing space. Customs digitisation, faster auctions of abandoned containers, scanner repairs, and expanded lab facilities are all urgent.

Unless systemic flaws are addressed, today's congestion could harden into a chronic crisis—undermining trade and Bangladesh's economic growth ambitions, they warn.

Mahfuzul Hoque Shah, former director of the Chattogram Chamber of Commerce and Industry, said, "The government must strengthen customs with manpower and curb corruption."

Others stress shifting pressure to Payra and Mongla ports, and hiring professional logistics experts to modernise operations.

"The port lacks skilled supply chain and logistics managers, which is why congestion keeps recurring," said maritime expert Captain Anam Chowdhury. "Hiring professionals could make the system efficient."

Port is trying to cope with extra pressure

Since 7 July, the Bangladesh Navy has significantly reduced vessel congestion at the outer anchorage. Previously, 17-20 vessels would wait daily for berthing, each incurring $10,000–$15,000 in demurrage. Now the number has fallen to 5-6 vessels, and turnaround time has dropped from five days to two. But this progress is being undermined by customs' slow handling of containers.

The Chattogram Port Authority (CPA) took additional steps to speed up berthing and cut ship backlogs. In recent weeks, the CPA increased container ship berths from 10 to 12-13, reducing waiting vessels at outer anchorage from 20 on 1 August to just seven by 19 August.

This move, aimed at minimising demurrage charges – around $15,000 per extra day for a vessel – has boosted unloading and improved supply chain timelines.

Port data shows steady handling rates: on 19 August, 9,644 TEUs were processed (4,589 imports and 5,055 exports/empties), following 10,997 TEUs the previous day. But the influx has overwhelmed the yard, where container stock rose by 9,073 units since 1 August, pushing occupancy close to the bursting point.

Analysts note that while faster berthing has eased one bottleneck, it has worsened another. The port is designed to handle about 100 container ships a month, assuming 13 berths and an average three-day stay per vessel.

Globally, delays at ports like Singapore have surged, pushing more feeder traffic towards Chattogram and intensifying local strain.

But by mid-August, 118 ships had been approved, 18 above capacity, partly due to congestion at transshipment hubs like Singapore and Colombo.

As a result, average waiting times climbed to 3.9 days last week. Gearless vessels faced 6-10 day delays at the Chittagong Container Terminal and New Mooring Container Terminal, compared to 1–3 days for geared ships at the General Cargo Berth.

Currently, Chattogram Port has 18 jetties across its three terminals. Of these, four in the New Mooring Container Terminal and two in the Chittagong Container Terminal are dedicated to container vessels. Another six jetties under the General Cargo Berth also handle containers, while the remaining six are used for general cargo.

Port officials argue that while yard occupancy has risen, overall port congestion has eased due to increased berthing capacity and higher daily handling rates. On 19 August, the port delivered 4,254 TEUs, higher than the past couple of days, they said, citing enhanced capacity.

Despite the challenges, the port set a record in FY24, handling 3.276 million TEUs—averaging about 9,000 per day, up from 7,000-8,000 previously. Deliveries have held steady at 5,000–6,000 daily, though scanner failures saw only 3,832 boxes delivered on 18 August and 4,254 the next day.

CPA Secretary Md Omar Faruk said, "The number of containers has increased, but so has our capacity – now about 60,000 TEUs. However, when four scanners broke down simultaneously, unloading was disrupted. We have reported the matter to the authorities."

The Bangladesh Navy's oversight at NCT has lifted handling capacity by 30%, reducing ship waits, noted Bida Chairman Ashiq Chowdhury during a recent inspection.