There is a serious backlog of containers, and the port auctions thousands of TEUs of stranded goods to free up yard space
Due to the approaching month of Ramadan, a large number of commodities flooded into Chittagong, causing serious accumulation. Recently, the Chittagong Port Authority has increased the storage fees for dangerous goods containers and required importers and freight forwarders to pick up the goods as soon as possible, otherwise they will face April 1. Effective fines.
In addition, it is reported that the Chittagong Customs and Port Authority of Bangladesh will begin this week to clear hundreds of undelivered containers stranded in the port. In the case of global container shortages, these containers occupy the port and yard of Chittagong. Valuable space.
As the country’s importers failed to pick up the goods, hundreds of containers filled with rotten and expired goods were stranded in the ports and yards outside the terminals. In total, there are about 7,379 teu of container cargo waiting for auction recently.
Shipping agents said that the latest move will allow about 300 containers to flow back into the market.
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The Chittagong Port Authority (CPA) has the right to auction containers loaded with cargo 45 days after the date of discharge. These containers are then handed over to the customs department, which is responsible for auctioning and disposing of rotten or expired goods.
Since the outbreak of the Covid-19 pandemic last year, shipping companies have been plagued by a shortage of containers. Due to the lack of 40'-foot containers, Bangladesh's export market is particularly hampered.
Shipping companies try to solve the shortage by importing empty containers, which causes higher costs.
The auction will result in Yangming Shipping receiving 163 containers, MSC receiving 60, Maersk 22, and Continental Trades 19.
Mohammad Ahsanuzzaman, deputy director of Transmarine Logistics, a local agent of Yangming, said that the initiative to dispose of long-term idle/rotted goods has greatly reduced the burden on carriers operating in Bangladesh.
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He said: “The consignee’s failure to take action to take away the imported goods will not only harm the interests of the carrier, but will also occupy yard space and put pressure on the management of peak seasons.”
"Some containers have been used for too long to be ultimately unusable. Even if the cargo is destroyed, it is a loss to the carrier. The resumption of some containers will definitely cause those shipping companies that are experiencing container shortages across Asia. Benefit."
Although exporters in the country may be happy to learn that there are more containers in the system, the new epidemic lockdown regulations may affect the country's output, which stipulates that factories can only operate with half the normal number of employees.
Manufacturing production may be severely hampered. Apparel manufacturers worry about huge damage and economic losses.
"We urge the government to keep export-oriented industries free from the latest directives," said Mohammad Hatem, first vice chairman of the Bangladesh Knitwear Manufacturers and Exporters Association. "Employing half of the workers will have serious consequences for industry and the economy."
