Heavy rain, rough sea disrupt Ctg Port services, supply chain 

Highlights

• Cargo handling remains well below normal levels
• More than 60 vessels stranded at outer anchorage
• Businesses warn of supply chain disruptions nationwide
• Importers seek compensation for rain-damaged cargo

Five consecutive days of heavy rainfall and rough seas have severely disrupted cargo handling at Chattogram Port, slowing handling and deliveries and raising concerns among businesses over potential supply chain disruptions across the country.

The adverse weather has halted lighter vessel operations at the port's outer anchorage, preventing imported cargo from being transported to destinations nationwide. 

At the same time, waterlogging at port terminals and inland container depots (ICDs) has allegedly damaged imported goods, prompting importers and customs clearing and forwarding (C&F) agents to seek compensation. However, the Chattogram Port Authority (CPA) has rejected liability, describing the damage as an "Act of God."

Business leaders warned that prolonged disruptions could lead to shortages of essential commodities, including wheat, edible oil, sugar, fertiliser, clinker and other industrial raw materials in regional markets.

The disruptions have already hit wholesale trade at Chattogram's Khatunganj, the country's largest food commodity market, where daily business has dropped sharply.

Cargo handling remains below normal

Port data show cargo handling and container delivery have remained significantly below normal levels over the past several days, although operations have gradually improved.

Container handling fell to 4,797 TEUs on 7 July, compared with the port's normal daily average of 9,000 to 11,000 TEUs. It increased to 5,230 TEUs on 8 July, 6,414 TEUs on 9 July and 7,146 TEUs on 10 July, yet well below the regular average.

Container deliveries also remained subdued. The port delivered only 2,606 TEUs on 8 July, rising to 2,820 TEUs on 9 July and 3,452 TEUs on 10 July, still well below normal operating capacity.

Businesses said the slower movement of cargo is delaying industrial production and affecting domestic distribution networks.

More than 60 ships stranded

Sarwar Hossain Sagar, president of the Bangladesh Berth Operator and Ship Handling Operators Association, said more than 60 vessels are currently waiting at Chattogram Port's outer anchorage because rough seas have prevented offshore cargo operations.

"Each idle vessel is incurring demurrage costs of around $25,000 to $30,000 per day," he said.

According to him, the industry is losing between $1.2 million and $1.5 million every day, equivalent to roughly Tk15 crore to Tk20 crore. Over the past five days, cumulative losses have exceeded Tk100 crore.

He added that between 4,000 and 5,000 workers involved in offshore cargo handling have remained without work during the suspension.

Parvez Ahmed, spokesperson for the Bangladesh Water Transport Cell, said no cargo has been transferred between mother vessels and lighter vessels for the past five days because of rough sea conditions.

"Lighter vessels are waiting in the Karnaphuli River and Patenga offshore until weather conditions improve," he said. "Cargo transportation through inland waterways will remain suspended as long as the sea remains rough."

He noted that more than 70% of the country's domestic cargo transportation moves through waterways. Continued disruption, he warned, could affect supplies in warehouses across the country, particularly for wheat, sugar, edible oil and other essential commodities.

The impact is already being felt at Khatunganj, Chattogram's largest wholesale market for food commodities.

Aminur Rahman Mintu, general secretary of Khatungonj Trade and Industry Association, said daily transactions that usually range between Tk200 crore and Tk250 crore have fallen to only around Tk30 crore because of transport disruptions and slower cargo arrivals.

He warned that if supplies from Chattogram continue to slow, rural markets may also experience shortages of essential food commodities.

Garment factories face production disruptions

The adverse weather has also affected the readymade garment sector.

SM Abu Tayyab, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said flooding in low-lying residential areas prevented many workers from reporting to factories over the past five days.

"Attendance declined significantly on at least two working days, forcing some factories to reduce production while others temporarily suspended operations," he said.

Factories will have to operate additional shifts to recover lost production, he added.

He also warned that delays in releasing imported raw materials from the port could create shortages of industrial inputs and further disrupt garment manufacturing if normal operations are not restored quickly.

He urged authorities to ensure full-scale port operations as soon as weather conditions permit.

Importers seek compensation for damaged cargo

Importers and freight operators alleged that waterlogging at port yards and several private container terminals damaged imported cargo stored in containers.

Captain Salahuddin, president of the Bangladesh Shipping Agents Association, said water accumulated because of inadequate drainage facilities inside the port.

"A considerable amount of cargo has reportedly been damaged, but no formal assessment has yet been conducted," he said.

He urged the port authority to assess losses and compensate affected importers.

Khairul Alam Sujan, former vice-president of the Bangladesh Freight Forwarders Association, said the flooding exposed weaknesses in the port's drainage infrastructure.

"Modern ports should have alternative drainage systems capable of quickly removing rainwater during extreme weather," he said.

He alleged that waterlogging occurred not only inside the port yard but also at four or five private container depots, causing damage to importers' goods.

According to him, depot operators should also share responsibility where inadequate infrastructure contributed to the losses.

Despite repeated attempts, Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depot Association (BICDA), could not be reached for comment on the alleged damage to goods at the depots as he did not respond to calls from this correspondent.

Port disclaims liability

On Friday, the Chattogram Port Authority issued a public notice informing importers, exporters, shipping agents and other port users that it would not accept responsibility for any losses or damages caused by continuous rainfall and flooding inside port-protected areas since 5 July.

The notice described the incident as an "Act of God" and cited Regulation 199(14) of the Regulations for Working of Chittagong Port (Cargo & Container), 2001, stating that the authority is legally immune from compensation claims arising from such natural calamities.

The notice further said the CPA disclaims any liability for compensation under both the Chittagong Port Authority Act, 2022 and the Regulations for Working of Chittagong Port (Cargo & Container), 2001.

Despite repeated attempts, CPA Secretary Refayet Hamim could not be reached for comment on the alleged damage to goods at the port terminals as he did not respond to calls from this correspondent.