Customs Clearance Stalled, Chittagong Port Faces Massive Financial Losses

Staff Reporter

Before the Chittagong Port could recover from the nearly week-long suspension of customs clearance activities, the upcoming 10-day Eid-ul-Azha holiday is set to further disrupt operations. Customs and banking activities will remain closed during this period, creating significant obstacles in cargo release, according to business leaders. Currently, customs clearance at the port has come to a standstill.

Customs officials have been observing a full work abstention since May 14 in protest of the National Board of Revenue’s (NBR) dissolution. Simultaneously, labor unrest at the port has also caused operational disruptions. Adding to this, the extended Eid holiday has raised concerns about multi-dimensional financial losses.

Demurrage charges for imported goods at Chittagong Port have skyrocketed due to delays in clearance. Currently, a 20-foot container incurs $24 per day for the first seven days, $48 per day for the next 13 days, and up to $96 per day in the third phase—far higher than previous rates. This has severely impacted the country’s industrial sector.

Industrial entrepreneurs say production has stalled as raw materials remain stuck at the port. Leaders of several major industries, including Premier Cement, BSRM, Pacific Jeans, and Asian-Duff Group, have reported that delays in cargo release are forcing them to limit or halt production, posing a major challenge in fulfilling export orders.

The ready-made garment sector—Bangladesh’s largest export industry—is particularly at risk. With monthly export earnings of around $3 billion, industry insiders say even a slight delay in receiving accessories can disrupt the entire production process.

Congestion at the port has exceeded its handling capacity. Shipping companies, including MSC Bangladesh, warn that continued container pile-ups will reduce operational efficiency and damage the port’s international reputation.

Meanwhile, leaders of the Bangladesh Chamber of Industries (BCI), BGMEA, and BKMEA emphasize that keeping the port operational alone is not enough—customs, banks, and bond offices must also remain open. Otherwise, recovering losses after the holidays will be extremely difficult.

Due to the prolonged Eid holiday and prior work abstention, losses are estimated at at least $4 million per day. Beyond visible losses, hidden costs such as labor, electricity, and storage expenses are further amplifying the financial damage.

Mahmud Hasan, former vice-president of BGMEA and leader of the recently elected Jatiya Party forum, said, “If the government takes urgent measures, some of the losses from this deadlock can be mitigated. However, no such initiative has been observed from the government. We urge the authorities to address this issue immediately.”