Bangladesh Protests Lead to Port Backlogs, Weeklong Berthing Delays
Deadly student protests in Bangladesh that led to a government-imposed curfew, factory closures and an 11-day nationwide internet blackout have also posed problems for garment makers as they seek to ship product out of the country.
The unrest, which was led by Bangladeshi university students who were protesting against the restoration of quotas in government jobs, caused operational disruptions at several ports throughout the country and temporarily halted cross-border trade with India.
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Bangladesh’s largest seaport, Chattogram Port (also known as Chittagong Port), was shuttered for six days before container movement resumed Thursday.
The ripple effects of halted operations are now being felt by trucks and ships in the area, as the port is still experiencing severe congestion at its container yard. This has resulted in a long queue of vessels at the port’s outer anchorage and berthing delays of up to nine days.
At least 13 container vessels were waiting to berth as other ships at the docks were unable to unload imports due to the space constraints at the yards, according to a report from India Shipping News.
That report said there were 35,421 20-foot equivalent units (TEUs) of full container load shipments, meaning containers entirely occupied by a single shipper’s goods, at the import yards as of Monday morning. This would be over 88 percent of the yards’ capacity to store 40,368 TEUs.
Officials from various shipping firms identified three reasons for the extended berthing times. The first was the suspension of deliveries due to the unrest and curfew in the port city, resulting in the space constraints and the barring of unloading of containers from vessels. Secondly, the unrest also disrupted off-dock operations, which prevented the dispatch of export cargo and forced vessel operators to push back their scheduled departures.
In some examples of the lengthy wait times, the MSC Qingdao F arrived at the outer anchorgage of the Chattogram Port on July 21, yet is still awaiting berth. And two other container vessels, SOL Resilience and SOL Reliance, are not expected to berth until July 31 at the earliest.
The delayed berthing could lead to costs of at least $15,000 to $20,000 per day for charterers leasing the boat from a shipowner, Muntasir Rubayat, director of the Bangladesh Shipping Agents Association, told India Shipping News.
The internet blackout was responsible for the third and final problem, in that shipping agents were unable to promptly receive import discharge permissions. This prevented them from sharing necessary documents like shipment details with authorities. Additionally, the blackout prevented the Chittagong Port Authority from accessing naval authority approvals required for unloading dangerous cargo.
The backlogs in Chattogram come amid rampant port congestion elsewhere worldwide, with an estimated 6.6 percent of the global container shipping capacity currently caught up the fold, according to Linerlytica.
Such backlogs could be a drag on Bangladesh’s economy, particularly the dominant apparel industry that represents most of its cargo. In 2023, Bangladesh exported $47.4 billion in total apparel, representing 85.3 percent of the $55.6 billion in total goods shipped out of the market, according to the country’s Export Promotion Bureau (EPB).
According to a report from Bangladesh-based newspaper The Business Post, SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said retailers and brands assured them in a Monday meeting that they would not seek any discount, air shipment or purchase order cancellation due to the unrest throughout the country.
However, the brands expressed concern about the timely shipment of garments in the wake of the port delays.
The meeting included a request from the BGMEA that there not be any “system-generated” discounts for delayed shipments which would reduce their earnings.
According to a report from supply chain publication The Loadstar, exporters say a discount of 5 percent to 10 percent is automatically generated by the systems of major buyers if there is a 15-day (or more) delay in making shipments.
The BGMEA was able to snag at least one win for the country’s apparel manufacturing industry, successfully requesting the Bangladeshi government to waive demurrage charges imposed during the clearance of imported goods at the ports.
Led by Kochi, the BGMEA delegation requested the expedited clearance of the waiting containers for the garment sector without leaving the late fees to ensure uninterrupted import-export activities and timely export of goods within the buyers’ lead time.
Traditionally, at Chattogram Port, 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 20-foot container, which rises to $12 from 12 days in and $24 from 21 days.
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