Cargo volume surges in July as US tariff looms, chokes Dhaka-Ctg highway

Highlights:

• Cargo surge causes severe gridlock on Dhaka-Chattogram Highway
• Export volumes rose up to 263% at Sitakunda ICDs
• Depots overloaded; trucks wait days, block highway lanes
• Parking shortages, poor scheduling worsen the traffic crisis
• Fatal road accidents spiked during peak congestion in July
• Calls grow for expanded ICD capacity and better planning

The Dhaka-Chattogram Highway – the country's main trade artery – has been facing severe traffic congestion as export-import cargo volumes surge to and from 19 Inland Container Depots (ICDs) in the port city.

Long queues of covered vans laden with export goods have narrowed the port-bound lane, stretching the 20-minute 20km journey from Kumira of Sitakunda to AK Khan Gate in Chattogram city into gruelling 2-3 hours, according to businesses and locals.

The gridlock is not just wasting valuable working hours but is also costing lives, with road accidents spiking dramatically in July.

Export cargo volume surges

Export cargo volumes at the 19 ICDs rose by 150% overall in July, according to the Bangladesh Inland Container Depots Association (Bicda). But the increase at the five ICDs in Sitakunda was far higher – ranging from 127% to 263% – while import cargo doubled compared to June.

The surge was largely driven by exporters racing to ship goods before a new US tariff took effect on 1 August. Industry insiders say the pressure is likely to continue until September, the peak ready-made garment (RMG) shipment season.

Cargo handling jumps

Bicda data shows Chattogram's ICDs handled 85,000 TEUs in July, up from over 32,000 in June. Import cargo volumes rose from 13,000 to 25,000 TEUs in the same period. Both the export and import cargo handled in July were the highest in the last seven months.

From January to June, the inland container depots (ICDs) consistently handled a higher volume of export cargo than imports. In January, exports reached 70,338 TEUs, more than three times the 21,039 TEUs of imports. February saw exports at 61,672 TEUs versus 21,847 TEUs of imports, while in March exports stood at 63,692 TEUs compared to 21,264 TEUs of imports. 

The gap narrowed slightly in April, with 49,345 TEUs of exports against 22,476 TEUs of imports. In May, exports surged to 72,516 TEUs, nearly triple the 26,545 TEUs of imports. June recorded the lowest figures in the period, with 32,355 TEUs of exports and 12,960 TEUs of import cargo.

In July, the largest share of the surge hit KDS Logistics in Kumira, BM Depot in Sonaichhari, Port Link in Bhatiari, and Summit-Ispahani near AK Khan Gate. With freight forwarders and shipping lines sending up to 700 trucks a day to depots designed to receive around 400, excess vehicles have been forced to park on the highway for days at a time, worsening congestion.

Six ICDs along Sitakunda's highway stretch

The Dhaka-Chattogram Highway's 30km stretch through Sitakunda hosts six ICDs: Nemsan and KDS Logistics in Kumira, BM Depot in Sonaichhari, Port Link in Bhatiari, and Golden and ISATL in Kartoli. Another ICD, Bay Link, is under construction in Bashbaria.

Because these facilities sit directly beside the highway, truck entry and exit regularly disrupt traffic. During cargo surges, queues spill onto the road, creating gridlocks.

Depot-by-depot spike in export volumes

The largest ICD, KDS Logistics, handled 4,641 TEUs in June, but volumes soared 163% to 12,230 TEUs in July. Port Link saw a 226% jump from 2,818 TEUs to 9,199 TEUs, while BM Depot's handling rose by 127% from 2,422 TEUs to 5,503 TEUs. Nemsan Depot recorded the highest percentage increase – up 263% from 772 TEUs in June to 2,807 TEUs in July.

The influx has forced some covered vans to wait up to four days for depot entry, reducing road capacity and worsening bottlenecks.

Parking shortages and poor coordination blamed

Truck drivers say ICDs lack adequate parking. Operators counter that they can handle 200–500 vehicles under normal conditions, blaming poor coordination for the chaos. They say many exporters send goods without confirmed freight forwarder schedules, leaving trucks stranded outside.

"Problems occur when exporters send cargo without schedules," said Ahsanul Kabir, executive director of KDS Logistics. "Until a schedule is given, we cannot receive the goods, so trucks have no option but to wait outside."

Chowdhury Zafar Ahmed, secretary general of the Bangladesh Covered Van-Truck-Prime Mover Owners Association, accused several depots – including KDS, BM, Port Link, and Summit–Ispahani – of failing to provide adequate parking despite charging Tk50-60 per day from drivers. "During the July-September peak, proper parking could have prevented much of this congestion," he said.

Abdullah Al Mamun, assistant commissioner (land) in Sitakunda, said mobile court operations have identified two key problems – lack of parking and poor coordination. "We've issued instructions to depots, and we hope to see improvement soon," he added.

He noted that unplanned, narrow U-turns also contribute to congestion. "When a long vehicle takes a U-turn, both lanes are blocked, slowing down the highway," he added.  

Calls for increased ICD capacity

Ruhul Amin Sikder, secretary general of Bicda, said cargo volumes are rising annually, but ICD capacity has not kept pace. He added that the Tk50 per day cap on parking fees discourages operators from acquiring land for expansion.

Ahsanul Kabir said two new ICDs have been built and will start operations soon, with two more in the pipeline. "It's a positive sign that trade is growing, but we must be prepared to handle the rising cargo," he said.

Congestion linked to rising fatalities

Highway police data shows road accident fatalities have risen sharply in Sitakunda: 11 deaths from January-March, six in April, eight in May, six in June, and 13 in July during the worst congestion – with 32 accidents that month alone.

Abdul Momen, officer-in-charge of Baroawlia Highway Police, told TBS that drivers have even tried to assault officers during fines for illegal parking. Mobile court drives with executive magistrates have so far failed to bring lasting relief.