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The port is piling up! Businesses face huge demurrage fees!
Jul 30, 2024|
View:101It is understood that Bangladesh has seriously affected local port operations and logistics due to highway blockades, curfews and internet restrictions caused by protests in the past nearly week. Currently, there are almost 40.000 containers piled up at the Chittagong yard, which are mainly used to load imported goods.
This is putting a lot of pressure on importers. They faced hefty demurrage charges for holding containers at port yards for more than four days, which they saw as another blow after factory closures and huge financial losses caused by failure to ship goods on time.
According to port officials, importers can keep boxes for four days free after they are unloaded from the ship. Starting on the fifth day, the port charges $6 per day for a 20-foot container, which increases to $12 after 12 days and $24 after 21 days. A 40-foot container costs twice as much as the above standard.
Businesses are asking the government to waive these fees to help reduce the pressure!
The Bangladesh Chamber of Commerce and Industry made a request on Wednesday to waive demurrage this week and not to charge any new fees for 15 days after the port resumes normal operations. The Chittagong Chamber of Commerce and Industry is also calling on the government to waive the fee.
In response to this situation, the junior shipping minister, Khalid Mahmud Chowdhury, said that if the company submits an application, the government has the possibility of agreeing.
He pointed out that the government has already waived huge storage fees for businesses that are unable to receive boxes during the pandemic, and this time it will also actively consider their needs.
At present, Chittagong is facing a severe test. A large number of containers occupy about 80% of the yard space, and in general, when it reaches 60%, congestion can occur, hindering port operations.
According to port data, the port authority has only been able to deliver about 3.500 TEUs of containers per day for the past two days after the restoration of internet connectivity.
Here, we would like to remind all shippers and freight forwarders to pay attention to port dynamics and cargo node information in time to avoid unnecessary losses!
