Business leaders demand port demurrage waiver for all sectors, not just RMG

Internet outage and curfew have crippled Chattogram Port operations, leaving thousands of containers stranded in the yard which led to the government waiving demurrage fees for imported goods of the garment sector only, but other industries now demand similar relief.

On 19 July, a nationwide internet outage halted customs clearance and delivery at the port, leaving importers unable to collect containers for nearly a week. Business leaders requested a waiver of demurrage charges.

In response, the shipping ministry on 30 July issued a circular, waiving up to seven days' demurrage charges for any RMG consignments arriving at the port from 16 July to 5 August.

Typically, imported goods can be stored in the port yard free of charge for up to four days. With the waiver facility, apparel sector entrepreneurs now receive an 11-day free storage period.

However, business leaders argue that the container delivery disruption affected traders of all sectors, not just the garment sector.

"The garment sector is not the only one importing through Chattogram Port. Steel, medicine, electronics, food, agriculture, and many other industries rely on it for their goods and raw materials," said Omar Hazzaz, president of the Chittagong Chamber of Commerce and Industry (CCCI).

"During the internet blackout, traders could not retrieve their shipments from the port. This was beyond the control of the importers," he said.

Hazzaz said various business groups, including the Chittagong Chamber, Dhaka Chamber, and the FBCCI, have been pushing for demurrage charge waivers. Limiting this relief to only the garment sector has disappointed other industry traders.

"I am thus calling on the government to extend the storage fee waiver to all affected importers," the CCCI president added.

Kazi Mahmud Imam Bilu, general secretary of Chattogram Custom C&F Agents Association, told TBS, "Over a thousand containers from various sectors other than RMG were held up at the port. It was a national crisis.

"Waiving the demurrage charges only for the RMG has unfairly affected importers from other industries. The government should ensure fair treatment for all."

How much do importers pay for storage?

At Chattogram Port, importers can store their containers in the port's yard for up to four days free of charge.

After the initial four-day period, a storage fee of $6 per day applies to a 20-foot equivalent unit (TEU) container during the first week. In the second week, this fee increases to $12 per day, and from the 21st day until delivery, it goes up to $24 per day.

For a 40-foot container, these charges are doubled. After the initial four days, the rent is $12 per day for the next week, $24 per day for the following two weeks, and $48 per day from the 21st day until the container is collected.

Chattogram Port's yard can accommodate up to 53,518 TEU containers. 

As of 8am on 31 July, there were 39,139 TEUs of imported cargo awaiting clearance at Chattogram Port, with most of them related to the garment industry.