The severe flooding in Bangladesh, which has affected over 4.5 million people, has severely impacted cargo transportation and port operations, leading to significant delays and congestion. The Dhaka-Chattogram highway—a primary cargo route—is underwater and is halting the movement of cargo destined for Chattogram Port.
Chattogram Port Congestion
Chattogram Port is facing severe congestion, with container loading delayed and vessels waiting for extended periods. As a result, export-laden trucks from Dhaka and other areas are facing obstacles, diversions, and delays in reaching Chattogram depots. The highway has been severely flooded, with reports of waist-deep water and a 40km traffic jam.
Container De-Stuffing and Congestion
Container de-stuffing is delayed due to high water levels at the Kaptai Hydro-Electric Power Plant, causing congestion at port sheds. Delivery times are slow, and new containers cannot be destuffed due to lack of space. Vessels are waiting up to 15 days for de-stuffing, and congestion has spread to inland container depots (ICDs).
ICDs hold over 15,000 TEUs of export boxes, nearly double the usual storage. To address congestion, Chittagong Port Authority and Customs have decided to operate 24/7, including weekends and public holidays.
Air Freight and Dhaka Airport Situation
Dhaka Airport remains congested, with limited space in cargo facilities and a shortage of cargo airlines. Airfreight costs per kilogram from Dhaka to Europe and the US have increased, and goods are being stored outside designated cargo areas due to a lack of available flights.
The current situation in Bangladesh poses significant challenges impacting export-import operations. Flooding seems to have eased, and road movement is getting back to normal gradually. However, the combination of congestion at Chattogram Port, delays in container de-stuffing, and limited air cargo capacity have created a perfect storm that threatens to disrupt global supply chains.
Mohawk Global’s India Center of Excellence is closely monitoring the situation, adapting to changing circumstances, and exploring solutions to minimize the impact to our clients. We will continue to provide updates as necessary.