Flood disruptions at Chattogram Port spark industry crisis

Leading business bodies have urged the government to immediately restore normal operations at Chattogram Port and announce an emergency support package for flood-affected industries and exporters.

In a joint letter to Shipping Minister Shaikh Rabiul Alam, the presidents of the BGMEA, BKMEA, BTMA, and the Chittagong Chamber of Commerce and Industry (CCCI) warned that continued disruptions at the country’s principal seaport threaten industrial production, exports, employment, and national supply chains.

Heavy rainfall since 5 July has inundated several port yards and nearby private container depots, damaging both import and export cargo. 

The business leaders stated that flooding and waterlogging have halted cargo unloading, storage, and transportation. 

This delays export shipments of garments, home textiles, leather goods, pharmaceuticals, and agricultural products, while putting imported raw materials and food items at risk of damage.

They warned that prolonged delays could trigger order cancellations, forced price discounts, contractual penalties, and expensive air freight costs. 

Furthermore, businesses are already facing mounting demurrage, detention, storage, and shipping fees. This places severe pressure on cash flow, loan repayments, and wage payments, particularly for small and medium-sized enterprises.

The letter also criticised a 10 July notice from the Chittagong Port Authority that rejected compensation claims. 

The associations argued that losses caused by inadequate infrastructure or operational shortcomings must be independently investigated and fairly compensated.

To ease the crisis, they called for the immediate restoration of port, road and rail connectivity; a temporary waiver of demurrage and other port charges; fast-track customs clearance for essential imports and export cargo; low-interest refinancing and working capital support; extensions of loan repayment and trade-related deadlines; and relief on taxes and utility payments.

The associations also proposed forming a high-level inter-ministerial task force to coordinate the immediate response, alongside developing a National Trade Continuity Framework to protect Bangladesh’s supply chains during future natural disasters. 

They urged the government to swiftly assess total losses and deliver a comprehensive financial and policy package to safeguard the national economy.