Ctg Port standoff threatens ripple effects across economy
Container handling drops by 40%, export-import and supply chain disrupted as work stoppage drags on
The paralysis at Chattogram Port caused by work stoppage is no longer confined to the port gates; it is rapidly evolving into a broader supply-chain disruption with economy-wide implications.
As work remains suspended, containers are piling up, import cargo clearance has slowed, export shipments are missing schedules, and storage charges, vessel demurrage and truck penalties are mounting by the day, raising concerns about price pressures on essential commodities ahead of Ramadan.
The two-day work abstention, observed from 8am to 4pm on Saturday and yesterday, was called by the Jatiyatabadi Sramik Dal and the Chattogram Bandar Rokkha Sangram Oikya Parishad in protest against the government's decision to lease out the New Mooring Container Terminal (NCT). Labour leaders yesterday announced a fresh stoppage for today during the same hours and warned of tougher programmes if their demands are not met.
Chattogram Port, which typically handles 8,000-9,000 TEUs of containers a day, has seen a significant drop in its activity, with an estimated loss of at least 5,000 TEUs in container handling and around 3,000 TEUs in deliveries during the disruption. The fallout has been visible in the form of acute congestion inside the port and in adjacent yards, where more than 5,000 import- and export-bound vehicles remain stranded.
The financial burden of this disruption is rising quickly across the logistics chain. Importers are being compelled to pay additional container storage charges ranging from $24 to $192 per container, while shipping lines are incurring vessel demurrage costs of $15,000 to $20,000 per ship as turnaround schedules slip. Transport operators, meanwhile, are facing daily penalties of Tk5,000 to Tk10,000 for each truck stuck inside the port.
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Businesses voice concerns
Business leaders warn, these costs do not disappear within the logistics system. They are ultimately passed down the chain – from shipping lines to importers, from importers to wholesalers, and finally to consumers – creating fresh upward pressure on prices of essential goods and adding to inflationary risks just weeks before Ramadan.
"Additional costs do not disappear. At the end of the day, they will be added to product prices and passed on to consumers," said importer and customs agent Akramul Hoque Mamun, warning of a ripple effect across the market.
Md Shehab Udduza Chowdhury, vice president of the Bangladesh Garment Manufacturers and Exporters Association, told TBS, "After several days of effort, the government had managed to reduce port congestion to some extent. It is now a matter of serious concern that imports and exports are being disrupted once again due to the port becoming dysfunctional.
"If this continues, export-bound consignments will miss vessel schedules, as ships will not wait. If these consignments cannot be shipped on time, orders may be cancelled. Consequently, buyers may claim discounts, or exporters may be forced to ship goods by air at several times the original cost."
Shehab further said, "Should an exporter fall into any of these situations, it will be nearly impossible for them to recover. We are in talks with the government to ensure the problem is resolved as quickly as possible."
Towhidul Alam, general secretary of Chattogram Fresh Fruit Importer Association, said, "An extra day delay to release a container from the port costs an importer additional Tk10,000-15,000, which eventually adds to the product price and consumers have to bear the burden.
The disruption has also affected inland container depots. Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depots Association (BICDA), said export delivery fell from 2,941 TEUs on Friday to 1,610 TEUs on Saturday following the strike. In comparison, import deliveries dropped from 1,410 TEUs to just 600 TEUs. Overall operations declined by more than 40%, he added.
A visit to the port yesterday morning found terminals unusually silent, with gantry cranes and other cargo-handling equipment lying idle. Port insiders described the scene as unprecedented in the past two decades.
Transporters hit by penalties
Transporters say they are bearing the immediate brunt of the penalties, although the costs are eventually recovered from importers. "But ultimately, the additional cost is recovered from importers, which is later passed on to the consumers' shoulders," said Chowdhury Zafar Ahmad, secretary general of the Bangladesh Truck-Covered Van and Prime Mover Owner Association.
Ramadan supply worries
With less than 20 days remaining before Ramadan, business leaders fear that prolonged disruption could destabilise supply chains for essential commodities.
Former Chattogram Chamber of Commerce and Industries director Mahfuzul Hoque Shah said even brief interruptions at the country's main seaport have economy-wide consequences. "Chattogram Port is the most critical installation of the country. Even a few hours of disruption can have a ripple effect on the national economy," he said, urging dialogue to resolve the impasse.
Transfers deepen tensions
Tensions deepened after the port authority on Saturday transferred four officials and employees to the Pangaon Inland Container Terminal in Dhaka over allegations of leading protests against the NCT agreement. They were instructed to join their new postings by yesterday morning.
The transferred officials, however, refused to join their new postings and instead participated in the work stoppage.
Meanwhile, the CPA yesterday transferred 12 more officials and employees. The transfers were ordered through two separate office notices issued by the CPA's chief personnel officer.
Most of the transferred officials and employees were previously posted at operationally sensitive sections of the port, according to CPA officials.
CPA downplays impact
The Chattogram Port Authority (CPA), however, downplayed the impact. At a press briefing yesterday afternoon, CPA Director (Administration) Mohammad Omar Faruk said port operations were continuing despite partial disruption, noting that 1,000 TEUs had been delivered the previous day and 1,700 TEUs were scheduled for delivery.
He added that manpower had been deployed to maintain round-the-clock operations and dismissed claims that the port was non-functional as propaganda.
Regarding the transferred officials' refusal to join their new postings, Faruk said action would be taken in accordance with existing rules.
Replying to a question, he said, "The NCT deal is a government decision. The CPA will implement whatever decision the government takes." He, however, could not confirm when the concession agreement between the CPA and DP World would be signed, saying the matter rests with the Public Private Partnership Authority.
What labour leaders say
Labour leaders rejected the CPA's account, insisting that no operations took place during protest hours.
Humayun Kabir, coordinator of the Bandar Rokkha Sangram Oikya Parishad, argued that NCT is the port's most profitable terminal and does not require foreign management. He alleged that the interim government is rushing the decision and questioned why it was not left to an incoming elected administration.
"After only 11 days, the country is going to have an elected government. Why don't they leave such a strategic decision to that government?" he asked.
Another labour leader, Ibrahim Khokan, criticised the authority for not initiating a dialogue even after two days of work abstention.
"Instead, they have taken illogical disciplinary actions against us," he said, announcing a fresh work stoppage for Monday from 8am to 4pm. "If the authority does not listen to us, we may go for tougher programmes the day after tomorrow [Tuesday]."
