Ctg port extends suspension of four-times penal rent

Our Correspondent

CHATTOGRAM, May 02: The Chittagong Port Authority (CPA) has again extended the suspension of its four-times penal rent on imported full container load (FCL) units at both Chittagong Port and Dhaka's Kamalapur ICD, aiming to ease pressure on traders and keep cargo movement steady.

This information was given in a circular issued by the Director (Traffic) Office of the CPA on Friday.

In the circular the CPA said the suspension-originally set to expire on April 30-will now remain in effect until May. It also said that the decision has been taken to keep the operational activities of the port dynamic and reduce container congestion.

Officials of CPA said the penal rent had been in place since a directive issued on 31 March 2021. The volume of dangerous goods has now fallen enough to restore operational normalcy.

The four-time charge was first introduced at Chittagong Port, Kamalapur ICD and Pangaon ICT to deter importers from leaving their boxes in the yards for weeks.

The port had been struggling with importers who delayed clearance to hold back supply and influence market prices. Under the new rates, storage fees jumped from USD 24 to USD 96 per day for a 20-foot container and from USD 48 to USD 192 for a 40-foot container.

Normally, containers enjoy four days of free storage after unloading. After that, daily charges begin at USD 6 for a 20-foot unit and USD 12 for a 40-foot unit, rising gradually to USD 24 and USD 48 by the third week.

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