Mongla port, the second largest seaport in Bangladesh, witnessed a sharp  decline in container handling throughout the first seven months of the  current fiscal year (FY), with growing economic constraints eroding  business activities in the country.

Official data shows that the  seaport handled around 12,083 twenty-foot equivalent units (TEUs) of  containers in the July-January period of FY25, down 36.78 percent  year-on-year.

The decline was worst in January, when container  handling receded by 42.02 percent year-on-year to 1,697 TEUs, reflecting  lower imports amid a sluggish domestic economy.

Khayrul Bashar,  CEO of local cargo service provider Fleet Freight, said the decline in  container handling is a result of the country's slowing industrial  output.

He said local businesses are being cautious about foreign  purchases amid the ongoing currency volatility and rising inflation,  resulting in lower shipments of industrial raw materials and other key  imports.

"Many businesses are cutting back on imports due to  rising costs and tighter financial conditions," Bashar added while  citing reduced shipments of bulk cargo and consumer goods through Mongla  port.

He further said that this reflects the country's broader  economic slowdown as lower imports of industrial inputs and intermediate  goods is affecting the import-reliant industries.

Bashar also informed that just 250 of roughly 700 clearing and forwarding agents enlisted by the port are currently active.

"Higher  import costs and lower industrial demand contributed to this decline,"  he said while highlighting challenges faced by the port in attracting  major shipping lines and handling higher trade volumes.

AKM Anisur  Rahman, member (engineering and development) of Mongla Port Authority,  said container handling has fallen compared to previous levels because  of economic challenges both home and abroad, including disruptions to  the global supply chain.

Rahman explained that container traffic  could also fluctuate amid shifting market trends, geopolitical  uncertainties and changes to import-export behaviour based on the  peoples' seasonal needs.

As such, he assured that such downturns  are temporary, and that upcoming infrastructure projects would enhance  the port's handling capacity.

Regarding a recently approved  project for enhancing the facilities at Mongla Port, Rahman said the  plans include constructing new jetties and upgrading its ICT with the  aim of attracting more foreign ships through improved efficiency.

More  specifically, the Tk 4,046 crore project will enhance the port's  container-handling capacity by establishing more modern facilities,  which includes a new container terminal, container delivery yard, and  container stockyard.

Regarding the decline in container handling  in January, Rahman expressed optimism that the volume would recover in  the coming months, when the trade activities stabilise.

Moreover,  Rahman said the port authority is focusing on long-term solutions to  strengthen Mongla's position in the maritime trade sector.

And  despite the recent decline, he remains hopeful that ongoing  infrastructure projects, including those for improving road and rail  links, will help Mongla port regain its momentum in coming months.

However,  Rahman said much will depend on the global economic recovery and  government initiatives to bolster trade and logistics efficiency.