Deadlock at Chittagong Port: Traders seek immediate intervention from high-level government

The unloading of goods at Chittagong Port has been suspended since January 31 due to the ongoing blockade in protest against the initiative to lease the New Mooring Container Terminal (NCT) to a foreign operator. 

The continuous strike at the port and the complete shutdown of ship movement has caused a major disaster in the country's import-export trade. 

Leaders of the country's top 10 trade organisations have sought immediate intervention from the government's high-level authorities to resolve this problem.

They expressed deep concern in a joint statement issued after an emergency meeting held at the BTMA office in Gulshan in the capital on Thursday. 

In the joint statement, the presidents of the Employers' Federation, BCI, MCCI, DCCI, BGMEA, BKMEA, BTMA, BTTLMEA, BGAPMEA and BGBA stated that this is the first time in the history of Chittagong Port that even ship movement has been completely stopped. 

This represents a rare crisis that is completely paralysing the country's main seaport, which is considered the heart of the national economy. 

A single day's closure of the port means a direct loss of several thousand crores of taka to the economy. 

In the emerging situation, the country is facing an irreparable loss as import-export activities of all sectors, including ready-made garments, have come to a standstill.

The leaders pointed out that on the one hand, raw materials for the export sector are not reaching the factories on time, while on the other hand, manufactured goods are lying at the port awaiting shipment. This makes it impossible to meet the deadlines given to international buyers. 

They fear that if this situation lasts for just a few more days, major purchase orders may be cancelled and foreign buyers may take tough decisions such as shifting their sourcing from Bangladesh.

It is worth noting that the country's manufacturing and export sectors are currently going through an unprecedented transitional period. 

Industries are facing a catastrophe due to declining demand for products in the global market, rising production costs and global geopolitical instability. 

Entrepreneurs are struggling desperately to reduce business operating costs and survive in the competition. 

In the meantime, due to the severe container congestion caused by the port deadlock, demurrage charges, port charges and storage rent are increasing, which is directly increasing the cost of production. 

This will increase the price of goods for export, which will have a negative impact on foreign trade in the long run.

On the other hand, the additional costs will fall on the price of imported goods. The holy month of Ramadan is approaching. If this crisis is not resolved now, there will be a delay in the arrival of imported daily necessities in the market, as a result of which the prices of goods will go beyond the reach of the common people due to an artificial crisis. 

Everyone will have to bear the responsibility for this public suffering.

The statement further noted that as a result of the current crisis, a kind of instability is being created in bank loans and LC management. 

If shipments are not made on time, traders will not be able to pay the bank's liabilities, which will pose an extreme risk to the entire financial sector.

As the country's import and export are greatly disrupted due to the described port deadlock, Bangladesh's image in the international market is being severely damaged. 

It is particularly worth noting that the adverse impact on the country's import and export will definitely have a negative impact on the overall economy. This will directly affect the rising prices of goods in the upcoming Ramadan and Eid markets. 

In other words, this problem will appear as a big challenge for the upcoming new government. 

Moreover, since the port's operations are not smooth and normal, ships operating on international routes engaged in import and export will be greatly hindered in their movement to their next destination.

The leaders humbly appealed to the current government to resolve the issue immediately in the larger interest of the country and to keep the economy running. 

The new government can review the complications that have arisen with the NCT lease, but it is not desirable to keep the port idle for that purpose.

At the same time, the leaders made a special request to the port labour unions, stating that they are the lifeblood of this port. They have the right to reach the government with their demands. 

However, stopping shipping means putting their own home in danger.

 The leaders urged them to step back from this exceptional position out of their responsibility to the country's economy. 

If the new government assures to review their demands, making the port operational will be the greatest act of patriotism of the present time.

They expressed the belief that the government and the agitating parties will quickly sit at the negotiating table and find a sustainable solution today. Otherwise, it will not be possible for anyone to overcome this great disaster.

The signatories of the statement are Bangladesh Employers Federation (BEF) President Fazle Shamim Ehsan, Bangladesh Chamber of Industries (BCI) President Anwar-ul-Alam Chowdhury (Pervez), Metropolitan Chamber of Commerce and Industry (MCCI) President Kamran Tanvirur Rahman, Dhaka Chamber of Commerce and Industry (DCCI) President Taskin Ahmed, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Acting President Selim Rahman, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem, Bangladesh Textiles Mills Association (BTMA) President Shawkat Aziz Russell, Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) President Md. Shahriar, President of Bangladesh Garments Buying House Association (BGBA) Md. Abdul Hamid, and President of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) M Shahadat Hossain.