Chtg Port congestion worries Bangladesh’s apparel traders

Chittagong: The persisting severe container congestions at the Chittagong Port has badly hit the supply of raw materials for the country’s biggest export earner, garment sector, making it difficult for apparel traders to maintain shipment schedules.

The container logjam came as an extra hazard for the readymade garment sector, whose production has already been hampered by frequent power outages in recent months, industry leaders said.

‘Delays in loading and unloading of consignments are seriously disturbing productions in garment industry,’ said Abdus Salam Murshedy, Senior Vice President of the Bangladesh Garment Manufacturers and Exporters Association.

Woven garment manufacturers, who heavily depend on imported fabrics to keep their production on, are suffering due to this congestion, said Salam, citing that he failed to take delivery of consignment of fabrics till Thursday although its delivery was scheduled for May 2.

He said that many vessels loaded with fabrics and raw materials for garment manufacturers are rescheduling their berthing to escape the congestion.

The industry leader claimed that delays in port are disturbing production schedules, causing loss of working hours and forcing them to opt for expensive air-shipments to meet the supply deadlines.

Meanwhile, mainline operators have announced imposition of congestion surcharge to offset the extra costs faced by them due to congestion at the country’s prime seaport. The announcement has worried the industry leaders.

Fazlul Hoque, President of the Bangladesh Knitwear Manufacturers and Exporters Association, said imposing $130 on each container as surcharges, to be effective from June 5, will inflate cost of exports and make them less competitive. ‘We are very much afraid of the surcharges.’

Unlike woven garment makers, knitwear exporters are less concerned about missing export schedules as knitwear sector has got strong local supply base for yarns and fabrics, he, however, said.

The Chittagong Port Authority last week hoped that the congestions would be cleared in two weeks and the imposition of surcharge could be averted.

The port city customs authority partly blamed a section of traders for the congestion as they do not take delivery of consignments in time and use port yard as warehouse.

Importers have been given a month time to clear their pending consignments or face auction. But the warning yielded little in terms of ending the logjam seen at the port for more than two months, keeping about 60 vessels waiting at the outer anchorage and at the port jetties till Wednesday.

Port sources said more than 15,000 units of containers were stockpiled at the port sheds as on Wednesday against the capacity to accommodate 13,000 units.

SK Ghosh, a top official of the QC Shipping, one of the leading shippers, said waiting time for berthing at the Chittagong Port increased this week to six days on an average, against two days in January of the current year.

Port stalemate has intensified sufferings for both shippers and consignees, said Ghosh, adding that shippers are failing to serve their clients with timely shipments and carry containers to mother vessels at Singapore Port in time due to this congestion.