Congestion at Asian ports, holiday cause crisis of 40-foot export containers at Ctg port

The Chattogram port is currently grappling with a severe shortage of 40-foot containers, which is significantly impacting the shipment of export goods. 

Several mainline operators, including Hapag-Lloyd, Mediterranean Shipping Company, Ocean Network Express, and Maersk Line, are struggling due to this crisis, which is caused by recent holidays, port congestion in Asia, rerouted ships due to Red Sea attacks, and an export reliance on the larger containers.

To alleviate the shortage, mainline operators are importing empty 40-foot containers from various international locations such as India, China, Dubai, and several African countries, according to feeder vessel operators.  

Sea Consortium has recently brought in at least 500 twenty-foot equivalent units (TEU) of empty 40-foot containers on two ships to Chattogram port, with more containers en route.

Containers destined for export are initially loaded at various private depots before being transported to the port based on the ship's schedule. This process involves 19 inland container depots in Chattogram. 

According to Ruhul Amin Shikder, secretary general of the Bangladesh Inland Container Depots Association, the shortage is most pronounced on routes to Europe and America, creating challenges for exporters.

Data from the Inland Container Depots Association indicates that 55% of imported goods into Bangladesh are transported in 20-foot containers, while 45% use 40-foot containers. For exports, 70% are shipped in 40-foot containers, with the remaining 30% in 20-foot containers. 

Annually, approximately 13 lakh TEU container goods are imported, and about 7 lakh TEU container goods are exported through Chattogram port. The majority of these exports consist of ready-made garments.

Shipping lines are currently facing delays and increased costs due to the necessity of routing containers through transhipment ports like Singapore, Port Klang and Tanjung Pelepas in Malaysia before reaching Chattogram. This disruption is heavily impacting the supply chain.

Michael Rodrigues, senior general manager of Sea Consortium, confirmed that his company has delivered 500 TEUs of empty containers recently, with more on the way. 

He pointed out that many containers loaded with goods are stuck at the port and depots due to the non-delivery of containers during the Eid-ul-Adha holidays. Congestion at ports in Singapore and Colombo is also worsening the shortage of empty containers at Chattogram port.

A senior official from Maersk Line highlighted that delayed delivery of imported goods is a major issue. This delay, partly due to the Eid holidays, prevents export goods from being loaded, potentially worsening the container shortage if not addressed promptly.

Khairul Alam Sujan, vice president of the Bangladesh Freight Forwarders Association, noted that the crisis has extended the transport time to Europe and America by 11 days, now totalling 22 days. The additional costs incurred by shipping lines for sourcing empty containers are likely to increase overall freight charges.

The empty container crisis has been partly attributed to Houthi rebel attacks in the Red Sea, forcing ships to reroute around the Cape of Good Hope, adding one to three weeks to their journey. 

Consequently, containers are stuck at various ports, causing delays at transhipment hubs in Asia and leading to shortages at Chattogram port.

Port operations have been disrupted for at least 20 days in the last three months due to two Eid holidays and a natural disaster. 

A five-day government holiday in mid-April for Eid-ul-Fitr and Pahela Baishakh, Cyclone Remal in late May, and the Eid-ul-Adha holidays in June collectively resulted in significant congestion and container shortages.

Chattogram Port Authority Secretary Md Omar Faruque said that importers who had delayed taking delivery of their goods during the Eid holidays began doing so on 23 June, and normal delivery activities are expected to resume soon.