The Shipping Ministry has declared that it will not impose demurrage for imported containers containing raw materials and accessories for the apparel industry. These containers were unable to be delivered from the Chittagong port because of seven days of operational disruptions.
The country’s main harbour was the source of the violence that centred around the quota reform movement, leading to the Government imposing a nationwide curfew and a five-day internet blackout, which delayed the delivery of the commodities.
The news was given in a press statement from Md. Jahangir Alam, Senior Information Officer for the Shipping Ministry, although it did not include a timeline.
State Minister for Shipping Khalid Mahmud Chowdhury announced the decision at a meeting with a delegation of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) at his office in Dhaka yesterday, the release said.
BGMEA President SM Mannan led the delegation.
The State Minister promised the media that the government would not collect demurrage for imported containers that are delivered later than scheduled on July 25 during a visit to the port.
The State Minister noted that despite the turbulence of the previous week, the port was still operating during the meeting with the BGMEA on Sunday.
However, the Minister said that clothing exporters were unable to accept prompt delivery of their import consignments from the port because of the internet blackout, which interfered with the port’s and customs authority’s ability to operate.
According to him, the decision was made to support RMG manufacturers in carrying out import and export operations via the port and guarantee export shipments within the lead time specified by the buyers.
BGMEA Vice-President Rakibul Alam, who was present at the meeting, told the local media that the waiver would be effective for import containers that could not be taken out after the expiry of a four-day free stay.
Imported containers are allowed to stay at the port yards free of charge for the first four days after being unloaded from vessels.
The port levies demurrage for a filled 20-foot container at US $ 6 per day for the first week after the four free days. For the next week, it costs US $ 12 every day. It then costs twenty-four dollars a day. The fees are doubled for a 40-foot container.
According to Md. Omar Faruk, Secretary of the Chittagong Port Authority (CPA), they were informed of the decision but had not yet received an official letter on the subject.
The port authority would comply once they receive an official decision, he stated.
Due to the unstable circumstances, cargo and container deliveries from the port yards ceased progressively on 17th July before being further disrupted by the internet blackout that started on 18th July.
On 22nd July, the Chittagong port was encumbered with 42,150 TEUs (twenty-foot equivalent units) of containers, occupying over 79 per cent of the port’s storage capacity of 53,118 TEUs.
Smooth operations of a port are hampered if containers occupy over 60 per cent of its storage capacity, port officials said.