Lighter vessels shortage, container congestion at Ctg port disrupt supply chain

Highlights:

• Over 22% of lighter vessels are now floating with cargo
• One lighter vessel allotted instead of 3 per mother vessel
• Over 4,000 extra containers accumulated in a month
• Outer anchorage vessel count rose over 9% in a month

Chattogram Port is facing a severe shortage of lighter vessels, with over 400 privately owned vessels remaining idle at the outer anchorage, causing significant disruptions in the supply chain.

This shortage, combined with severe container congestion at the country's busiest port, is further escalating operational challenges and leading to financial losses for stakeholders.

According to the Chattogram Port Authority, the port handles approximately 3,000 privately owned lighter vessels, oil tankers and industrial cargo ships. Among them, around 1,800 privately owned lighter vessels are frequently used by importers as floating warehouses, further exacerbating delays.

SM Nazer Hossain, vice president of the Consumers Association of Bangladesh (CAB), told The Business Standard, "Dishonest importers and traders deliberately create congestion to induce supply shortages, which in turn leads to a rise in product prices."

He added that the government needs to be more stringent in monitoring to prevent supply shortages in the market.

Previously, three lighter vessels were allocated daily to unload goods from a single mother vessel, but this has now dropped to one vessel per day or a maximum of two in three days, reducing the daily allocation by 50%.

According to the Bangladesh Water Transport Workers Federation, each lighter vessel carries between 1,200 and 5,000 tonnes of cargo, with an average capacity of 3,000 tonnes per vessel.

With 400 vessels unable to unload, an estimated 12 lakh tonnes of essential goods – such as edible oil, sugar, lentils, maize, coal, stone, cement clinker, gypsum and urea fly ash – remain stuck on these vessels.

Due to this backlog, mother vessels cannot leave on time, increasing congestion at the outer anchorage. Ships staying beyond their allotted time are incurring daily fines ranging from $15,000 to $20,000, depending on their size.

Container congestion 

Apart from the lighter vessel shortage, container congestion has also worsened, particularly with increased imports ahead of Ramadan. 

Over the last month, the number of imported containers at the port's yard has surged by 4,000 TEUs (Twenty-Foot Equivalent Unit). Railway container transport has more than doubled, further straining the port's logistics.

To address the situation, the Chattogram Port Authority has held discussions with Bangladesh Railway and other stakeholders and has scheduled a press conference today to outline potential solutions.

Vessel owners incur losses 

Lighter vessel owners are incurring heavy losses due to delays. 

According to Saeed Mahmud, president of the Bangladesh Cargo Vessel Owners' Association, each vessel is losing Tk10-15 lakh due to prolonged unloading times.

Engineer Mehboob Kabir, general secretary of the association, pointed out that many importers lack proper warehouse facilities, using lighter vessels as floating storage instead. This practice has worsened the crisis, as over 400 vessels remain occupied with undelivered goods.

Imports surge 

According to Bangladesh Bank's Letter of Credit (LC) settlement data, imports of nine essential commodities surged significantly between October and January of the 2024-25 fiscal year. 

Total imports increased from 14.75 lakh tonnes in the same period of the previous fiscal year to 19.19 lakh tonnes this year.

Compared to the previous year, imports during October-January saw notable increases: chickpeas 64%, soybean oil 34%, dates 23%, sugar 20%, lentils 44%, garlic 20% and ginger 56%.

Every year, around 4,200 commercial ships arrive at the port, of which 45% are container ships, 45% are bulk carriers and 10% are tankers. About 80% of the bulk cargo is unloaded at outer anchorages using lighter vessels, while only 20% is directly unloaded at the jetty. 

The container yard at Chattogram port has a storage capacity of 53,518 TEUs. Typically, the port holds 30,000-35,000 TEUs for smooth operations, but as of 24 January, this number had risen to 36,063 TEUs. By 24 February, the count had surged to 40,089 TEUs – an 11% increase in just one month.

Over the past three months, the number of imported goods and arriving vessels has been steadily increasing. 

In November 2024, 325 vessels carried 99.16 lakh tonnes of imported goods. This number rose to 341 ships carrying 105.14 lakh tonnes of imports in December 2024. By January 2025, imports reached their highest level of the 2024-25 fiscal year, with 371 ships delivering 113.68 lakh tonnes of goods. 

The Chattogram port railway slot has a standard capacity of 825 TEUs for transporting containers to the Dhaka Kamalapur ICD. However, by 25 February, the number had surged to 1,758 TEUs, more than double the capacity.

To ease congestion, the port authority has warned of severe penalties for delayed container clearance. Containers not cleared by 9 March will be charged four times the standard storage fees.

According to the Chattogram Port Authority, the current storage fees for a 20-foot container are: $6 for the first seven days after the 4-day free period; $12 for the next seven days; and $24 from the third week onward.

For a 40-foot container, the charges are $12 for the first seven days after the 4-day free period; $24 for the next seven days; and $48 from the third week onward.

Under the new directive, these charges will be quadrupled if clearance is delayed.

Md Omar Faruk, secretary of the Chattogram Port Authority, stated, "We have issued this penalty notice to prevent artificial supply shortages in the market. From the fifth day onwards, containers will be charged four times the regular fee."

Amirul Haque, managing director of Premier Cement, noted, "Ships typically unload within 15-20 days, but delays occur due to warehouse shortages. Demurrage fees depend on agreements between ship owners and importers."

Commodore Mohammad Maksud Alam, director general of the Department of Shipping, told The Business Standard, "According to the Maritime Transport Policy, lighter vessels cannot be used as warehouses, as this disrupts the supply chain. However, due to a court-imposed restriction on enforcing this policy, we are currently unable to hold meetings with BWTC sellers or ship owners to address the issue."