Bangladesh exporters are demanding compensation after severe flooding at Chittagong Port disrupted operations for nearly a week, delaying vessel departures by up to 24 hours and damaging cargo in LCL sheds and private inland depots. Business groups—including the Bangladesh Garment Manufacturers and Exporters Association—filed formal claims with the shipping ministry on 16 July 2026, requesting loss assessment, charge waivers, and infrastructure upgrades. The Chittagong Port Authority refused liability, calling the event an 'act of God', though officials acknowledged planned warehouse renovations. The port handles over 90% of Bangladesh’s seaborne trade.
According to theloadstar.com, Bangladesh’s exporters are demanding financial compensation following nearly a week of flood-related disruption at Chittagong Port — the country’s primary maritime gateway — which caused vessel departures to be delayed by up to 24 hours.
Flooding cripples critical infrastructure
From 16 July 2026, torrential rainfall submerged sections of Chittagong Port Authority (CPA) yards, private inland container depots, and key access highways. The flooding severely restricted cargo movement: export containers failed to reach the port on schedule, terminal operations slowed dramatically, and container release volumes dropped significantly. Videos circulating on social media showed dozens of containers submerged at the port’s general cargo berth, raising urgent concerns about cargo integrity.
Businesses reported damage to goods stored in less-than-container-load (LCL) sheds within the port, while forwarders confirmed losses at several private inland container depots. According to Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depots Association, export container deliveries to port yards “almost halved” during the first two days of the downpour due to waterlogged roads and inundated yard areas.
Exporters file formal claims and policy demands
On Sunday, apparel manufacturers and other business groups submitted a formal letter to Bangladesh’s shipping ministry seeking redress. Their demands included compensation for damaged cargo, emergency restoration of road and rail connectivity to Chittagong Port, waivers on port rent, storage, yard, and shipping charges for containers stranded by the floods, and fast-track customs clearance for raw materials, export cargo, food, medicines, and other perishable or urgent goods.
The coalition also called for creation of a special committee to assess losses — a step the CPA has declined to undertake. Inamul Haq Khan, SVP of the Bangladesh Garment Manufacturers and Exporters Association, stated:
“We think the losses will be huge.” — Inamul Haq Khan, SVP of the Bangladesh Garment Manufacturers and Exporters Association
He rejected the CPA’s characterization of the event as an “act of God,” arguing instead that the flooding reflected systemic management failures:
“We don’t think waterlogging falls under the purview of ‘act of God’. This is the port authority’s failure for proper management of containers and cargo.” — Inamul Haq Khan, SVP of the Bangladesh Garment Manufacturers and Exporters Association
Port authority denies liability, cites international standards
The Chittagong Port Authority maintains it bears no responsibility for cargo damage, citing the flooding as an “act of God.” Spokesperson Nahid Mostafa affirmed the authority stores containers “in accordance with international practice” and therefore “never assumes liability” for such incidents. “Since we are not paying any compensation, we are not assessing the loss.” — Nahid Mostafa, CPA spokesperson.
However, the CPA acknowledged plans to renovate its warehouses to mitigate future risks. Meanwhile, Khairul Alam Suzan, former VP of the Bangladesh Freight Forwarders Association, emphasized preventability:
“Since there are specific vulnerabilities at certain points within the port, if these are identified and addressed immediately, we can avert potential damage in the future.” — Khairul Alam Suzan, former VP of the Bangladesh Freight Forwarders Association
Suzan also asserted that cargo damage occurred both inside the port and at private depots, and that the CPA “should have taken proper measures so that no waterlogging occurs.”
Industry context and operational impact
This incident underscores persistent infrastructure vulnerabilities in Bangladesh’s trade logistics network. Chittagong Port handles over 90% of the nation’s seaborne trade and serves as the logistical backbone for its $50 billion annual garment export industry. Recent government initiatives — including scrapping foreign ownership caps on inland container depots in June 2026 and opening air cargo operations to private operators — signal growing recognition of systemic bottlenecks.
Yet this flooding event reveals how climate-exposed infrastructure remains a critical weak link. Supply chain professionals managing Bangladesh-bound or Bangladesh-origin shipments must now account for elevated lead-time variability, increased demurrage exposure, and heightened risk of moisture-related cargo deterioration — particularly for textiles, pharmaceuticals, and perishables. The lack of a coordinated loss-assessment mechanism further complicates insurance claims and working capital recovery for SME exporters.
Source: The Loadstar
Compiled from international media by the SCI.AI editorial team.
