Economy looks down the barrel as ports stay shut

Trackback URL

Download PDF

The indefinite suspension of operations at all sea and land ports including Chittagong port which is scaring off cargo carriers is set to have an adverse impact on the price of essentials in the country.
“As there were no business activities at the port since Sunday afternoon, the premier port of the country looks like a ghost town,” said a high-ranking official of the Department of Shipping who visited the Chittagong port yesterday.

Everything was at a standstill and dozens of large vessels, some half-loaded and some yet to start loading or unloading goods, were sitting idle at the port jetty, he added.

Thousands of tons of imported goods are stuck in the ships waiting at the outer anchorage and hundreds of trucks were seen stranded at different land ports.

The economic loss due to the suspension of operations of the Chittagong Port is gargantuan, he added.

The cargo carriers already increased the freight fare of Chittagong Port-bound cargo by $50 for each twenty equivalent units (TEU), sources said, adding that those who booked for Chittagong port-bound cargo on Sunday and Monday had to pay the increased fare.

The prices of rice, sugar, pulses, onion and ginger may go up due to the suspension of operations of the ports and transport vehicles, sources said.

Now, 10-12 ships are sitting idle at different jetties while 17 other ships loaded with imported goods have been waiting at the outer anchorage.

Four ships belonging to Bangladeshi company HRC Shipping Limited are waiting at Chittagong port — two in the jetties and two in the outer anchorage. One of the ships was supposed to sail yesterday for Colombo but could not as the loading activities halted after the ship was loaded half of its capacity, said a high official of the HRC last night.

Another ship, supposed to sail for Port Klang in Malaysia, is also sitting idle at a port jetty, the official said.

The two ships waiting at the outer anchorage are full with essential commodities and raw materials for garment industry, he said, adding that if the delivery of the goods is delayed, it will have a negative impact on the supply of essential goods to the market.

Meanwhile, a number of ocean-going ships are leaving Chittagong port either without loading or unloading any goods or half loaded, sources said.

Foreign ship Josko View left Chittagong port yesterday afternoon with only 320 TEUs, although its capacity is 750 TEUs.

Another ship Marissa Green has been floating idle at a jetty as half of its cargo was off loaded. The ship, stranded at Chittagong port for 14 days, cannot sail without discharging all the cargo, the sources added. The ship is a charter vessel with a rent of $18,000 per day.

Expressing concern over the situation, the business community has urged the political leaders to keep the port and export sector out of the purview of political programmes.

A delegation led by Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) President Mir Nasir Hossain will call on the President and Chief Adviser to the caretaker government Iajuddin Ahmed today to urge him to take steps for resolving the political impasse immediately for the greater interest of country.

Losses due to sudden closure of ports and other business activities will be colossal, Nasir said.

The sudden political stalemate will hamper in achieving this year’s target of 6.2 per cent Gross Domestic Product (GDP) growth, he said.

The FBCCI chief called upon the political leaders to keep the port and export-oriented sectors out of the purview of political agitation.

“The dream for increasing the amount of annual garment exports up to $15 billion from the existing $8 billion is going to be shattered due to sudden political unrest,” said SM Fazlul Haque, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Two days’ loss in the garment sector alone would be around Tk 500 crore due to the closure of the ports and countrywide blockade programme, Fazlul Haque said.

The sector suffered Tk 200 crore losses due to suspension of exports while its production losses is no less than Tk 150 crore per day, he said.

Besides, many garment manufacturers are unable to continue production as the raw materials did not reach the factories.

The exporters are now spending extra money for emergency air shipment to fulfil the buyers’ requirements while many buyers concerned over the situation may turn to other countries for placing orders, he said.

Many other organisations and industries that are related to the garment industry — banks, insurance, transport, hotel — will also suffer huge losses due to the volatile political situation, he added.

Leave a Reply