Diesel shortage stalls cargo flow at Chattogram port

Representational Image.

A worsening diesel shortage has brought lighter vessel operations at Chattogram Port to a near standstill, disrupting cargo unloading from mother vessels at the outer anchorage and affecting supply chains across the country.

Industry operators say the situation has sharply reduced the movement of goods, increased import costs, and raised concerns over potential shortages of essential commodities and energy inputs.

Despite repeated appeals to the Energy Division and several coordination meetings, the Bangladesh Petroleum Corporation has yet to take effective steps to ease the shortage, stakeholders allege.

While BPC maintains that fuel supply is being provided in line with last year’s demand, industry representatives argue that imports have increased significantly this year, widening the gap between supply and demand. Higher import volumes have also increased vessel movement, but fuel availability has not kept pace, causing delays in lighter vessel operations.

The government, however, insists that Bangladesh is not facing any fuel crisis. Officials say supply remains stable despite global energy market volatility linked to ongoing geopolitical tensions.

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit said Bangladesh currently holds its highest-ever fuel stock.

“Bangladesh has sufficient fuel stock to meet demand for April and May, and steps are underway to ensure uninterrupted supply in June,” he said during a visit to Eastern Refinery Limited in Chattogram.

Energy Minister Iqbal Hasan Mahmud Tuku earlier noted that supply disruptions are often caused by logistical delays rather than an actual shortage. Officials also pointed to a sudden rise in demand as a contributing factor.

Cargo unloading delays worsen

Cargo handling has slowed significantly, with typical 15-day turnaround times nearly doubling to around a month. Importers are now facing demurrage charges of up to $300,000 per vessel, costs that are likely to be passed on to consumers.

Coal handling has also been affected as lighter vessel shortages disrupt fuel transport for power plants. The usual 32–38-hour cycle has stretched to eight to ten days, creating a growing backlog at the outer anchorage.

Around 80 mother vessels carrying clinker, food grains, soybean, and poultry feed are also stuck, adding pressure to domestic markets and contributing to inflation.

One example is MV GM Fortune, which arrived on 16 March with 50,868 tonnes of soybean seed. Even after a month, about 2,900 tonnes remained onboard, extending its turnaround time to 32 days.

“Without fuel, vessels cannot operate on schedule. This is directly increasing turnaround time for mother vessels,” said Parvez Ahmed, spokesperson of the Bangladesh Water Transport Coordination Cell.

Idle vessels and rising losses

Many vessels remain stranded due to fuel shortages. Operators estimate daily losses between $20,000 and $50,000 per vessel depending on size.

Saiful Alam, deputy general manager (shipping) at Nabil Group, said the company currently has nine ships waiting at the anchorage.

“We need at least 18 lighter vessels daily, but we get only about 10, often after delays of two to three days. Fuel shortages are making the situation worse,” he said, adding that demurrage costs reach about $25,000 per vessel per day.

Jahangir Alam, owner of ANJ Trading, said his company received only 50,000 litres of diesel against a requirement of over 150,000 litres for allocated vessels.

Stakeholders also point to weaker coordination, saying meetings that were once daily now occur every three to four days. Truck shortages at unloading points and inconsistent fuel supply are further slowing operations.

Energy supply risks rise

The disruption is beginning to affect power generation. Bangladesh relies heavily on imported coal, and delays in lighter vessel availability are slowing coal transport.

A logistics official said only three to four lighter vessels are currently available daily, against a requirement of eight to ten.

“If this continues, it may disrupt electricity generation,” the official warned.

Calls for urgent action

Industry leaders are urging immediate government intervention to stabilise fuel supply for lighter vessels. They say earlier decisions remain unimplemented, prolonging the crisis.

“Without swift action, the entire logistics chain will remain under pressure,” said Parvez Ahmed, warning that prolonged delays could discourage foreign vessels and raise import costs further.

Director General of Shipping Commodore Shafiul Bari said a lighter vessel typically needs 3,000 to 4,000 litres of diesel per trip, but is currently receiving only 1,500 to 2,000 litres.

An inter-ministerial committee has been formed to address the issue, and officials hope for a quick resolution. However, stakeholders warn that unless the problem is resolved soon, it could seriously affect trade flow, energy security, and price stability.