The company managing the Patenga Container Terminal has hiked storage fees by four times for less-than-container-load (LCL) shipments that exceed the free storage period at its container freight stations. Red Sea Gateway Terminal (RSGT) from Saudi Arabia, the port operator, confirmed the revised charges came into effect on July 1.
For LCL shipments, which are too small to occupy a standard ocean freight container, the storage fee has surged from Tk 68 to Tk 272 per ton per day. This new rate is applicable for each day the cargo remains at the terminal after the 11-day free storage period ends.
RSGT stated that the decision was driven by persisting congestion in their warehouses, caused by a notable number of importers using the freight stations as economical storage rather than promptly retrieving their goods.
Concerns have been raised by port users over the substantial surge potentially leading to increased import expenses. Md Showkat Ali, the General Secretary of Chittagong Customs Agents Association, expressed formal objections to the decision, emphasizing the anticipated rise in import costs. The Association has urged the terminal operator to reconsider the decision.
An industrial raw materials importer, who chose to remain anonymous, highlighted that delays in cargo clearance are often due to procedural hurdles such as customs, banking, or factory-related issues. Imposing a fourfold storage fee increase without considering these practical challenges could inflate business costs.
The importer added that delays come with additional costs, and most importers strive to clear cargo swiftly to avoid unnecessary expenses.
Syed Aref Sarwar, the Head of Commercial and Public Affairs at RSGT Bangladesh, clarified that the heightened charge only applies to LCL shipments, representing less than 2 percent of the terminal’s total cargo volume. He noted that a significant portion of importers fail to clear their goods promptly due to the low storage costs, resulting in warehouse occupancy issues.
Sarwar explained that the tariff adjustment aligns with the Chittagong Port Authority’s regulations, enabling terminal operators to levy up to four times the standard storage fee for overdue cargo. Importers are allowed to store LCL cargo at no cost for up to 11 days post-unpacking at the container freight stations, with the additional charge aimed at discouraging long-term use of limited warehouse space.
The objective, as per Sarwar, is not profit-driven but to expedite cargo delivery and streamline terminal operations. Excessive warehouse occupation disrupts standard operations and impacts other importers awaiting goods.
RSGT took over the Patenga Container Terminal in 2024, becoming Bangladesh’s first foreign container terminal operator. The recent arrival of four ship-to-shore cranes on June 19 marked the completion of the main cargo-handling equipment deployment at the port. Sources from RSGT indicated that the terminal has been operating at full capacity since July.
