Ctg port extends suspension of four-fold penal rent on imported FCL containers

CHATTOGRAM, Dec 05: The Chittagong Port Authority (CPA) has again extended the suspension of its four-fold penal rent on imported full container load (FCL) units at both Chittagong Port and Dhaka's Kamalapur ICD, aiming to ease pressure on traders and keep cargo movement steady through the year-end.

A circular from the office of the director (traffic) was issued on Thursday in this regard. In the circular the CPA said the suspension-originally expiring on November 30-will now remain in effect until December 31 in the current calendar year (2025). The same pause applies to the enhanced rate at Kamalapur ICD. The decision is tied to CPA board resolution no. 19739 adopted on November 27 last.

The four-fold charge was first introduced on March 10 last at Chittagong Port, Kamalapur ICD and Pangaon ICT to deter importers from leaving their boxes in the yards for weeks. The port had been struggling with importers who delayed clearance to hold back supply and influence market prices. Under the new rates, storage fees jumped to USD 24- USD 96 per day for a 20-foot container and USD 48- USD 192 for a 40-foot container.

Normally, containers enjoy four days of free storage after unloading. After that, daily charges begin at USD 6 for a 20-foot unit and USD 12 for a 40-foot unit, rising gradually to USD 24 and USD 48 by the third week.

But the logistics chain has been under strain since mid-2024. Vessel bunching, customs delays and inland transport bottlenecks have slowed clearance across the board, leaving many traders unable to move boxes within the deadline. Importers argued that enforcing the four-fold penalty amid those disruptions would only inflate costs and clog the yards further.

Responding to the pressure, the CPA first suspended the higher rent on August 26 last for one month, then renewed the suspension in September and again in October. This latest decision marks the fourth extension.

CPA officials said the goal was to save storage space during the busiest shipment period of December. After the latest suspension of the penal rate, the port hopes importers will move containers out promptly rather than waiting for costs to pile up.

The authority has urged importers to clear FCL containers from both Chittagong Port and Kamalapur ICD as quickly as possible to maintain smooth operations.

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