Written by The Banking Post
The Chittagong Port Authority (CPA) has once again extended its suspension of the four-fold penal rent on imported full container load (FCL) units at both Chittagong Port and Dhaka’s Kamalapur ICD, giving traders more breathing room amid ongoing logistics disruptions.
A circular issued by the port’s traffic directorate on Thursday confirmed that the suspension—previously set to end on 30 November—will now remain in force until 31 December 2025. The pause also applies to the enhanced storage charges at Kamalapur ICD and follows CPA board resolution no. 19739, adopted on 27 November.
Why the penal rent was introduced
The four-fold charge was originally enforced on 10 March at Chittagong Port, Kamalapur ICD and Pangaon ICT to discourage importers from leaving containers in port yards for extended periods. Storage delays had become a tactic for some traders seeking to manipulate market supply, prompting the port to sharply raise its fees.
Under the penal rates, daily storage charges surged to USD 24–96 for a 20-foot container and USD 48–192 for a 40-foot container—far higher than the standard rates that begin at USD 6 and USD 12, respectively, after the four-day free storage period.
Congestion and delays drive repeated extensions
However, the logistics chain has been strained since mid-2024 due to vessel bunching, customs backlogs and transport delays. With many importers unable to clear containers on time, trade bodies warned that enforcing the higher penalty would worsen congestion and sharply increase business costs.
Facing mounting pressure, the CPA suspended the penal rent on 26 August for one month, then extended it in September and October. The latest move marks the fourth extension.
Authority aims to keep year-end flow smooth
CPA officials say the main objective now is to keep yard space available during December—the busiest shipment period of the year. By extending the suspension, the port hopes importers will clear their containers promptly rather than letting costs escalate.
The authority has urged traders to move FCL containers quickly from both Chittagong Port and Kamalapur ICD to ensure smooth operations throughout the peak season.
