News / Bangladesh looks at demurrage waiver as containers pile up in Chittagong

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The Chittagong port yards now have close to 40,000 teu of containers, mainly loaded with imports, piling up, following nearly a week of student protests that led to a highway blockade, curfew and internet restrictions.

And importers are facing huge demurrage charges for keeping containers at the port yards for more than four days – which they consider yet another blow after huge financial losses from factory closures and failures to ship goods on time.

According to a port official, importers can keep boxes free-of-charge for four days after unloading from vessels. From the fifth day, they are charged $6 a day for a 20ft container, which rises to $12 from 12 days in and $24 from 21 days – double for a 40ft box.

Businesses have demanded that the government waive the charges to help lessen the pain.

The Federation of Bangladesh Chambers of Commerce and Industry on Wednesday also demanded no demurrage charges for this week and requested the authorities refrain from any new charges up to 15 days after the port returns to normal operations. The Chittagong Chamber of Commerce and Industry has also urged government to waive charges.

And yesterday, junior shipping minister Khalid Mahmud Chowdhury indicated the government may agree, if businesses submit applications.

He pointed out that the government had waived huge storage charges for businesses that could not take delivery of boxes during Covid-19, and may also consider their demand this time, he said.

The huge stockpile of containers is now occupying some 80% of the yard space at Chittagong Port – congestion usually starts to hamper port operations when it reaches 60%.

The port authority has only been able to deliver some 3,500 teu of containers a day during the past two days, following the restoration of the internet connection, according to port data.