The Chittagong Port Authority (CPA) has backpedalled on its earlier decision to increase store rent fourfold for containers lying at the port yards for over 21 days.
The higher rent was scheduled to come into force today (Tuesday), designed to put pressure on importers to take delivery of boxes and free the yard spaces.
The port authority issued a notification in this regard on March 2, urging the importers to take quick delivery of boxes, since the presence of higher volume full container load (FCL) containers had been disrupting the port's day-to-day operational activities.
"The container delivery situation has improved after we've issued the notification. So, we are not going to make the higher rent notification effective," CPA Secretary Omar Faruk told the FE on Monday.
The authority will continue monitoring the container storage position at the port yards. It will rethink about imposition of penalty, if delivery situation deteriorates again, he added.
On Monday, 37,953 twenty-foot equivalent units (TEUs) of containers were lying at the port yards against their total capacity of 49,018 TEUs. Of these, FCL boxes were 35,479 TEUs.
Presently, importers pay US$24 a day as store rent for a TEU of container until 20 days from the day of its landing from ship. If the higher rent provision was enforced, the importers would have to pay $96 per day alongside the normal rent.
Officials said at least 15 per cent free yard space is needed for smooth operational activities of the port. But the share of free spaces goes down very often, as importers use the port yards as warehouse, since rent at the yards is much lower than godwons outside.
The trend becomes visible before the month of Ramadan every year, as importers keep their boxes at the port, and do not take delivery to create a supply shortage of essential commodities in the market to make windfall profit, they noted.
