Ctg port sees container number halve YoY amid import curb

The number of cargo containers in the yards of Chattogram port has declined to nearly half of its capacity year-on-year, owing largely to the global economic downturn and the government's import curb measures.

The country's premier seaport currently has the capacity to hold 53,518 twenty-foot equivalent unit (TEU) containers in a number of yards, which was 49,018 TEUs before 2022.

According to Chattogram port data, on 17 February, the port's General Cargo Berth (GCB), Chittagong Container Terminal (CCT), New Mooring Container Terminal (NCT) and New Mooring Overflow Container Yard had a total of 23,341 TEUs of containers, which is around 56% of their total holding capacity.

A year ago, on 17 February 2022, the number of containers available in these yards stood at 41,120 TEUs, which shows a drop of 17,779 TEUs in a year-on-year period.

Chittagong Chamber of Commerce and Industry (CCCI President Mahbubul Alam told The Business Standard (TBS), "Banks are still not able to open letters of credit (LCs) as per the demand of importers due to the dollar crisis, which has affected the overall import volume."

Chattogram port officials also cited the slump in global trade stemmed from the Russia-Ukraine war and the restriction on various imports to save foreign currency.

The port data also shows that container handling and delivery in these yards have also declined. Container handling often exceeds 10,000 TEUs in a day during normal times but data shows that this number has come down to 5-6,000 a day recently.

Some 6,588 TEUs were handled in the port yards on 17 February 2023, which was 8,407 TEUs on 17 February 2022.

A total of 31,33,020 TEUs were handled at Chattogram port in 2022 and 32,14,548 TEUs in 2021.

Similarly, on 17 February 2023, some 3,128 TEUs were delivered from the port yards, which was 4,118 TEUs on 17 February 2022.

The Chattogram port alone handles around 92% of the country's import and export trade and about 98% of all container shipments.

After the goods imported from different countries reach Chattogram port, they are unloaded from the ship and kept in the port yards. After customs clearance, they are transported by road, rail or waterways to their destinations across the country.

Traders said the reduction of imports which began last year continues in 2023, badly impacting the country's economy. 

Mohammed Shamsul Azam, the director of The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) told TBS, "The traders of the country's garment sector usually stay busy at this time of year but apparel orders from foreign buyers fell by about 40% due to reduced demand for clothes in Europe and America." 

As orders dropped, the import of raw materials for the garment industry also dropped naturally, and the number of containers shrunk in port yards, he said, adding that there is no immediate relief from this crisis until the war situation in Ukraine normalises.