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Demurrage Fees Are Doubled At Chittagong Port To Ease Congestion

SDI Logistics Co.,Ltd | Updated: Aug 28, 2017

THE penalty for leaving containers in yards past free time at Bangladesh's port of Chittagong has been doubled to US$12 per TEU per day and $24 per FEU, in a bid to ease congestion.

Previously, the Chittagong Port Authority (CPA) allowed importers to store containers free of charge for four days after unloading from a vessel before charging $6 and $12 per TEU and FEU, respectively, and after seven days in storage the rate doubled, reported IHS Media.

"The number of FCL [import full-containerload] containers inside the port increased a lot recently, causing space shortage and disrupting normal day-to-day affairs," director of port traffic Golam Sarwar stated in a notice to imports and shipping agents issued on August 18.

"Users are requested to take delivery of import containers without delay."

The country's prime sea port is reeling from the lack of adequate space compared with its growth, leading to congestion throughout the port area. It now can store a total of 36,357 TEU, of which 26,857 TEU are import containers, 4,000 TEU are export containers, and 5,500 TEU are empty containers.

However, port users have reacted sharply to the move.

"We are forced to keep containers additional days because of complications created by port authority and customs department. Imposing penalty, thereafter, will come as a bolt from the blue," former vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem said.