Ship arrival at Ctg port shrinks amid trade slump

Highlights:

• Ctg port comprises 3 terminals: General Cargo Berth, Chattogram Container Terminal, and New Mooring Container Terminal (NCT), collectively having 20 jetties
• Some of the General Cargo Berth jetties sit idle due to a lack of vessels
• The second half of fiscal 2022-23 witnessed a 7% decline in ship arrival at the port when compared to the first half

The bustling movement of merchant ships to and from Chattogram Port has dwindled due to a global trade recession triggered by the Russia-Ukraine war, resulting in several jetties of the country's largest seaport sitting idle recently.

Vessels typically endure a wait of three to five days before securing berths at the jetties for cargo unloading. But now ships are getting berthing slots on arrival and two-three jetties have sat idle over the past week, according to the Chittagong Port Authority. 

The port comprises three terminals, namely the General Cargo Berth (GCB), Chattogram Container Terminal (CCT), and New Mooring Container Terminal (NCT), collectively having 20 jetties. Of the 19 currently operational jetties, six jetties cater to bulk carriers, while 13 serve container ships.

NCT and CCT jetties saw consistent berthing of container ships but the General Cargo Berth (GCB) jetties remain conspicuously vacant for some time now, the port authority said.

Md Omar Faruk, secretary of the Chittagong Port Authority, acknowledged that the number of ships arriving at the port, as well as the handling of containers, have decreased due to a downturn in global trade, triggered by the Russia-Ukraine conflict.

The second half of the fiscal year 2022-23 witnessed a 7% decline in ship arrival at the port when compared to the first half. Between July and December of FY23, 2,201 arrived at the port whereas 2,052 ships arrived between January and June. Monthly average ship arrivals dwindled from 354.42 in the first half to 342 in the latter half, according to port data.

The mounting challenges faced by traders since October, stemming from the dollar crisis and tightened luxury goods import policies, have led to reduced imports and exports. This ripple effect extends to operational aspects, such as ship berthing, unloading procedures, and container handling at the port.

Chattogram Port witnessed a 2.48 lakh TEU (twenty-foot equivalent unit) decline in container handling during the fiscal year 2022-23 compared to the previous year.

President of Berth Operators Association Fazle Ekram Chowdhury told The Business Standard that the jetties of the General Cargo Berth (GCB) have been witnessing fewer vessels for more than a month and remained mostly vacant. As a result, berth operators are getting less work and less wages daily.

According to the port data, about 45% of the ships bringing goods from different countries are container ships, 45% are bulk carriers and 10% are tankers. Around 75%  of the bulk cargo was unloaded in outer anchorage through lighter vessels and the rest 25% in jetties.

Chattogram Port remains a pivotal trade hub, accounting for almost 92% of the nation's total import and export trade. Furthermore, it handles 98% of the country's import-export cargo containers.

The adverse effects of reduced container handling have caused Chattogram Port's ranking to slip from the world's busiest ports list. As per Lloyd's list published in July, Chittagong Port stood at the 67th position in 2023, a decline from its 64th position in 2022.