Overflowing empty containers making off-docks congested

Thousands of empty containers have created congestion at private off-docks, fast making it a taxing job for the shipping sector to fix the problem.

Seventeen off-docks, located in Chattogram, are now housing some 40,000 TEU (twenty-foot equivalent unit) empty containers, hurting smooth operations at depots.

The depots have the total capacity to store 77,700 TEUs of containers comprising 45,000 TEU empty containers, 15,000 each for export and import containers.

However, the depots now have nearly 24,000 TEUs of import containers and 3,500 TEUs of export containers.

In the last few days, clearing and forwarding agents have been alleging that off-docks are not interested in accepting empty containers from consignees' premises.

They also claimed that the port is giving priority to shipload empty containers generated at the port and living behind those of the off-docks.

"Presently, we've total free space to accommodate 14,000 TEUs of containers," said Bangladesh Inland Container Depots Association (BICDA) secretary Ruhul Amin Sikder.

"If we fill those with empty containers, how will we accommodate import containers from the port?" he posed a question.

The port authorities have asked the depots to receive at least 1,500 TEUs of import containers a day to free some space there, Mr Sikder said.

He, however, admitted that the matter of revenue acted behind off-docks' reluctance to receive more empty containers from consignees' premises.

By handling an export container, he said, an off-dock gets some Tk 7,500 in three days while it gets only Tk 2,200 by handling an empty container during the period.

For import containers, off-docks offer four free days and afterwards get $6.0 per day as store rent for a TEU in the next seven days, $12 per day until 20th day and $24 per day thereafter.

However, the rent is double in case of a forty-foot equivalent container.

Mohammad Ahsanuzzaman, associate director of Transmarine Logistics Ltd, the local agent of Yang Ming Line, said on Sunday shipping liners and depots will face a bottleneck if smooth reposition of empty containers is not executed.

"Bangladesh, being a trade-deficit country, has nearly 50 per cent of containers repositioned as empty. If depots can't free their premises by dispatching surplus empty containers, fresh inbound containers can't be shifted from the terminal and neither export operation can run without hindrance."

"Subsequently, the port's yard will end up congested, again," Mr Ahsanuzzaman told the FE.

He said depots are now packed with import and empty containers and refusing to accept empty units as many of them do not need those for lack of export bookings.

"Previously, most empty containers were loaded directly on vessels under force arrangement from the port," Mr Ahsanuzzaman cited.

"Carriers now need to pay haulage charge from depot to port yard along with hiked store rent to the depot that had been implemented a few months back."

He suggested that the port open up empty call from the depots and also the authorities can facilitate C&F agents to return empty containers directly to the vessel hook instead of sending those to depots to bring a balance until export volume increases.

Nowadays, shipping lines are failing to ship empty containers and paying large amounts as storage bills, Bangladesh Shipping Agents Association (BSAA) chairman Ahsanul Huq told the FE.

If this situation continues, he said, off-docks will face operational problem and export will suffer as outbound shipment is set to enhance after factories are opened fowling a month's closure.

"If off-docks are not free, import containers can't be taken there and the port may face further congestion," added Mr Huq.

He suggested the port prioritise shipment of empty containers from off-docks instead of those generated at its yard for a few days to create free space at depots.

Chattogram Port Authority chairman SM Abul Kalam Azad told the FE that the port is taking steps to free both the port yard and off-docks.

"The headache is I need to reduce the volume of containers at port yard in the quickest possible way for the continuation of smooth operation," he said.

Mr Azad further said that all the port-related problems would go shortly if the importers take delivery of their containers quickly.

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