Four of Bangladesh’s leading trade bodies have rejected the Chattogram Port Authority’s decision to deny responsibility for flood-related cargo damage, arguing that it cannot disclaim liability if inadequate infrastructure or operational failures contributed to losses inside the country’s principal seaport.
In a joint letter to Shipping Adviser Sheikh Rabiul Alam on Sunday, the Chittagong Chamber of Commerce and Industry (CCCI), Bangladesh Textile Mills Association (BTMA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) urged the government to waive port charges, assess traders’ losses and form a high-level inter-ministerial task force to address the disruption caused by last week’s flooding.
The appeal followed the port authority’s 10 July notice stating it would not accept compensation claims for damage to imported goods, containers or cargo caused by heavy rainfall and flash floods, describing the disaster as an “Act of God” or force majeure.
The business groups said torrential rain that began on 5 July inundated container yards and private inland container depots, damaging large volumes of import and export cargo and disrupting supply chains.
If cargo was damaged because of poor drainage, inadequate infrastructure or operational shortcomings, liability should be determined through an impartial investigation and affected businesses compensated fairly, they said.
“Failing to ensure accountability and fair redress will undermine the confidence of port users and damage the reputation of the country’s principal seaport,” the letter said.
The associations warned that businesses were incurring mounting costs as containers remained stranded while importers continued paying demurrage and storage charges for delays beyond their control.
They said manufacturers were struggling to secure imported raw materials, delaying exports of ready-made garments, textiles, leather goods and pharmaceuticals, with cottage, micro, small and medium enterprises likely to bear the brunt.
Speaking to TIMES of Bangladesh, CCCI President Md Amirul Haque questioned the port authority’s disaster preparedness.
“What preparations did the Chattogram Port Authority have to deal with this disaster? Simply calling it an Act of God cannot absolve the authority of responsibility if goods stored under its custody are damaged by rainwater,” he said.
The four organisations also submitted a nine-point package to restore normal trade operations.
They called for immediate restoration of port operations and road and rail connectivity, alongside a joint assessment committee comprising representatives from the port authority, Chattogram Custom House and business associations to quantify traders’ losses.
The proposals included temporary waivers of demurrage, detention, port rent, storage, shed and yard charges for flood-stranded containers, with new charges suspended until normal operations resume.
The associations also sought fast-track customs clearance for emergency consignments, perishable goods, industrial raw materials, food and medicines, together with low-cost refinancing, working capital support, deferred loan repayments and flexible loan rescheduling.
They further requested extensions for letters of credit (LCs), back-to-back LCs, import and export documentation, shipment schedules, export proceeds repatriation, utility bill payments, VAT, customs duties, taxes and other government fees without penalties.
The business groups also proposed dedicated rehabilitation funds for cottage, micro, small and medium enterprises, simplified customs and banking procedures for disposing of, re-exporting or replacing flood-damaged raw materials, and a high-level task force involving the ministries of shipping, commerce and finance, the National Board of Revenue, Bangladesh Bank, the Chattogram Port Authority, Customs and Bangladesh Railway.
For longer-term resilience, they recommended raising container yard elevations, building a modern drainage system within the port and developing a national trade continuity framework with alternative logistics routes and digital trade documentation to minimise future disruptions.
