Chittagong Port Faces Severe Disruption Amid Ongoing Strike

Chittagong Port, Bangladesh’s primary trade gateway, is experiencing significant operational disruptions, affecting approximately 92% of the country’s trade. The crisis has escalated into a major concern for factories, export orders, and foreign exchange earnings, ultimately impacting consumers. Although limited operations resumed after a six-day strike, normalcy remains elusive as protests and administrative actions continue to create uncertainty. The port is currently overwhelmed, with containers accumulating both inside and outside its facilities, and ships waiting at outer anchorage.

The unrest began on January 31, triggered by the decision to lease the New Mooring Container Terminal (NCT) to Dubai-based operator DP World. Workers claimed that this decision was made without adequate consultation. Tensions heightened when several employees were transferred without initiating dialogue. An eight-hour work stoppage escalated into an indefinite strike, halting vessel movement entirely—an unprecedented event in the port’s history. Although operations were briefly suspended for two days, the resumption has been slow due to tidal schedules and navigation restrictions. The backlog of ships and containers remains a pressing issue.

Container Congestion and Shipping Delays Intensify

Port authorities report that over 38,000 Twenty-foot Equivalent Units (TEUs) are currently stacked in the port’s yards, with more than 29,000 of these being full container loads directly tied to import-export activities. The export situation is particularly dire, with around 1,000 TEUs of export containers trapped within the port. Additionally, private inland container depots are holding between 13,000 and 14,000 export containers, while another 1,500 are at private depots and 1,750 are waiting to be transferred to the Kamalapur Inland Container Depot. Despite new export cargo arriving, the unresolved backlogs are straining the port’s capacity.

The outer anchorage vividly illustrates the paralysis, with over 50 container ships and more than 100 bulk carriers waiting to dock. Daily arrivals complicate berth scheduling, and shipping sources estimate demurrage costs ranging from $15,000 to $20,000 per vessel per day. Cumulatively, these delays are resulting in significant financial losses for the industry. The readymade garments sector is particularly hard hit, with several feeder vessels departing without scheduled export containers, disrupting shipments to key markets in Europe and the United States. Experts warn that clearing the backlog of over 14,000 export containers could take two to two-and-a-half months, jeopardizing Bangladesh’s trade credibility and buyer confidence.

Bangladeshi workers risk lives in shipbreaking yards

Business Concerns and Policy Tensions Rise

Importers and exporters, especially in the apparel sector, are urgently calling for intervention from the Ministry of Shipping to restore normal operations. The Acting President of the Bangladesh Garment Manufacturers and Exporters Association, Selim Rahman, emphasized that disruptions at Chittagong Port directly undermine supply chains and export flows. The association has warned that failure to meet lead times could lead to immediate financial losses and jeopardize future orders, affecting both export growth and foreign currency earnings.

The Dhaka Chamber of Commerce and Industry has reported that approximately 54,000 containers are stranded, with businesses incurring additional costs of Tk 10,000 to 15,000 per container daily. Given that the port typically handles about 9,000 TEUs per day, prolonged disruptions could lead to order cancellations and increased prices in the domestic market. Ten leading business associations have labeled the port as the “heartbeat” of the economy, stressing that even a single day of paralysis results in massive losses.

In response to the ongoing crisis, the port authority has sought asset investigations into 15 employees linked to the protests and requested travel bans, further escalating tensions. The Chittagong Port Protection Council has announced an indefinite strike, demanding the cancellation of the NCT lease to DP World and the reinstatement of transferred employees. Analysts suggest that this standoff has evolved beyond a labor dispute, posing a significant test for Bangladesh’s export capacity and international commercial reputation.

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