CPA threatens punitive rent on empty containers

Piles of empty cargo containers in port yards have far overshot store capacity that prompted the Chittagong Port Authority (CPA) to threaten the owners with penal rent in a bid to clear Bangladesh's commercial lifeline for smooth trade.

The CPA recently issued a notification to the stakeholders concerned for removing the empty containers from the port area or to pay additional store rent, officials said.

In the notification, the port authority has mentioned that the number of empty containers at the port yards has gone up significantly in the recent times. Presently, the yards have empty containers "several times higher" than the designated storage capacity for the same types of boxes.

"Due to the sluggishness in the shipment of empty containers or shifting them to the off-docks, congestions are also being created in FCL container yards," the notification mentions.

It also says the higher number of empty containers is also disrupting the delivery of goods to the importers and storing of newly unloaded boxes to the designated slots.

Giving a cut-off time for the cleanup, the CPA has said it will monitor the empty-container-delivery situation until August 7.

If the number of empty containers does not go down to a significant level, the authority will impose higher store rent on empty boxes in line with the section 160 of Regulations for Working of Chittagong Port (Cargo and Container) 2001, the edict reads.

According to CPA data as of Sunday, a total of 6,507 twenty-foot-equivalent units (TEUs) of empty containers were lying at port yards.

Of them, 4,237 TEUs were stored at the New-mooring Container Terminal while the GCB (General Cargo Berth) was stuffed with 2,270 TEUs.

Meanwhile, the CPA has initiated steps to ease both ship and container congestion at the port by rationalising the number of vessels allowed to anchor there.

To implement this, it has formed a joint committee comprising its own officials and representatives of the Bangladesh Shipping Agents Association (BSAA).

The goal is to scrutinise and regulate ship numbers based on capacity, efficiency, and port infrastructure.

The committee is led by the deputy conservator of the CPA as the convener.

Other members include the deputy traffic manager, terminal manager, assistant harbour master, and assistant traffic manager of the CPA, alongside a representative from the BSAA.

CPA officials stated that the port currently has the capacity to efficiently handle around 100 ships per month, which, under optimal conditions, could translate into annual container handling of approximately four million TEUs.

In contrast, 3.29 million TEUs were handled in the fiscal year 2024-25.

The port authority determines the vessel count based on full utilisation of ship capacity, error-free operations, and available port facilities.

Feeder operators and other port users are expected to benefit from this structured approach.

However, in recent months, challenges such as global disruptions caused by conflict and domestic strikes prompted the CPA to temporarily increase the number of container ships from 100 to 126 on an ad hoc basis, in coordination with feeder operators.

This was done to support the country's import-export activities and maintain trade flow.

While the move helped in the short term, it led to increased waiting times at the outer anchorage and congestion in the port yard.

The additional ships also fell short of capacity utilisation and often lacked the technical readiness required for smooth operations.

To resolve the issue, a meeting between the CPA and the BSAA was held on July 20, where both sides agreed to reduce the number of ad hoc vessels by 15.

Instead of making a unilateral decision, the CPA asked the BSAA to submit a rationalised list of ships by July 27.

However, no decision was received from the BSAA within the deadline.

As a result, the joint CPA-BSAA committee has now been activated to begin the rationalisation process.

The committee will evaluate the situation and is expected to recommend a balanced approach that serves both port efficiency and trade needs.

The committee will start its work very soon and come to a rational decision after considering the overall situation, said a CPA source.

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