Prolonged delays in clearance of imported goods may lead to price hikes: DCCI
"Although some buyers have temporarily agreed to extend deadlines, they may source products from other countries if the crisis is prolonged," says the chamber.
Dhaka Chamber of Commerce and Industries (DCCI) has expressed concern over the ongoing shutdown of Chattogram port and says this may trigger imported prices in the local market.
"As the month of Ramadan is just days ahead, prolonged delays in the clearance of imported goods may lead to price hikes in the local market, which would negatively impact consumers of all classes," said the trade lobby in a press statement today (5 February).
"In addition, this unexpected deadlock in cargo handling is likely to increase operational costs across trade and investment activities, creating an extra burden on both businesses and consumers," read the statement.
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"Moreover, if the situation continues, it will adversely affect the national economy," it said, adding, "There is also a growing concern of cancellation or diversion of purchase orders to competitor countries, as we are unable to process shipment of goods in time."
"Although some buyers have temporarily agreed to extend deadlines, they may source products from other countries if the crisis is prolonged," it said.
DCCI called for urgent government intervention to resolve the problem as soon as possible through discussions with all stakeholders concerned with Chattogram Port, considered the lifeline of Bangladesh's trade.
Besides, recognising the importance of keeping Chattogram Port, the primary driving wheel of our economy, fully operational, DCCI stressed the need for collective efforts involving the business community, the Chattogram Port Authority and all relevant stakeholders.
Nearly 92% of the country's import and export trade is handled through Chattogram Port, the country's largest. On average, around 2,60,000 Twenty-foot Equivalent Units (TEU) are cleared from this port every month and about 9,000 TEUs per day.
However, since 4 February, port operations have halted completely due to an workers' strike, who are demanding the cancellation of a deal leasing the New Mooring Container Terminal (NCT) to Dubai-based operator DP World.
According to the DCCI statement, approximately 54,000 containers of goods have been stranded at the port so far. Due to this delay in clearance, businessmen are incurring additional costs of Tk10,000 to Tk15,000 per day. This ongoing shutdown is having a severe impact on the country's export sector in particular.
