The country’s export shipments are facing unprecedented delays because of severe container scarcity in Chattogram port and congestion at transshipment ports such as Singapore, Colombo and Port Clang (Malaysia) to carry outbound cargo. As a result, anxiety has gripped the exporters as to whether they would be able to ship products on time. According to media reports on Sunday, the crisis has been prevailing for the last few weeks as the inland container depots (ICDs) are failing to send goods to the ports due to the acute shortage of containers and delays in getting space in vessels.
The Bangladesh Inland Container Depots Association (BICDA), the Bangladesh Freight Forwarders Association (BFFA) and the shippers have said that the 19 ICDs, also known as off-docks, can collectively store 10,000 TEU (twenty-foot equivalent unit) export containers but currently over 14,000 TEU of exports-laden boxes are waiting for shipping at the ICD yards. The crisis is causing freight charges to skyrocket. The cargoes are piled up in the ICDs, located in and outside the port. At the moment, the ICDs can’t receive any more goods. Usually it takes 2-3 days to send a container from an ICD to the Chattogram port for loading onto vessels. As it is now taking 7-10 days for the same process, huge tailbacks of export goods-laden vehicles have been created in front of the ICDs.
Expressing deep concern over the issue, top chamber and business leaders have said the delayed export shipment will cause them to lag behind in the tough competitive market. ‘We are expecting some orders in the upcoming spring and summer but this crisis may affect our orders if we fail to deliver goods on time. We are also concerned over the hike in freight charges, as buyers reduce our manufacturing prices due to high freight charges. This will cause us to lose competitiveness in the market.
‘It may be noted that Bangladesh-bound import containers are also facing congestion at transshipment ports. Amid huge congestion at Singapore port, a German container shipping company has suspended it’s booking of import containers bound for Bangladesh via Singapore for a month since 24 June. In this situation, arrangements of special feeder vessels to carry goods, especially garments, to transshipment ports are needed to mitigate the crisis to some extent. The Garment sector is Bangladesh’s largest foreign exchange earner. The delay in shipment will have a long-term impact on our exports and the economy.
