LITERATURE REVIEW
Global Perspective on Port Efficiency and Clearance Delays: Over 90% of global trade is facilitated by
ports,
which are essential components of global supply chains (UNCTAD, 2021). Improving lead times, cutting
logistical costs, and raising a country's competitiveness in global trade all depend on effective port operations.
However, ports around the world deal with issues including traffic, manual procedures, and poor infrastructure,
which cause supply chains to be disrupted and cargo clearance to be delayed (Koray et al., 2025; Notteboom,
2006).
Congestion and Delays: A widespread problem that impacts both industrialized and developing nations is port
congestion. According to studies, delays in cargo clearance have a detrimental effect on supply chain efficiency
by raising lead times, logistical costs, and inventory holding expenses (Meersman et al., 2012). For instance,
during the COVID-19 pandemic, delays at the US Port of Los Angeles caused major disruptions in
international supply chains, underscoring the significance of effective port operations (World Bank, 2022). In a
similar vein, congestion at India's Port of Mumbai has been connected to higher shipping costs and lower
export competitiveness (Ghate, P. S. 2025).
Automation and Technology: Automation and the use of information technology (IT) have been found to be
important ways to increase port efficiency. To expedite cargo clearance procedures and cut down on delays,
ports like Singapore and Colombo have installed cutting-edge IT systems, such as electronic data interchange
(EDI) and real-time tracking (Gonçalves, M., & Teixeira, L. 2025). For example, the Port of Singapore's
integrated IT system reduces clearance delays by 30% by enabling importers to electronically submit
documentation (Tsou, M. C. 2025). Leading ports are also implementing cutting-edge technologies like
blockchain and artificial intelligence (AI) to improve security, efficiency, and transparency in cargo handling
and risk management (Lu et al., 2016).
Port Efficiency and Supply Chain Performance
The success of the supply chain is directly impacted by port efficiency, especially when it comes to lead times,
costs, and dependability. According to Koray et al. (2025) and Notteboom (2006), effective ports can help
businesses achieve delivery dates and preserve a competitive edge by lowering the time and cost of cargo
movement. Effect on Lead Times: Production timetables may be thrown off and stockouts may result from
delays in cargo clearance at ports. For instance, it has been demonstrated that the apparel industry, which
depends on just-in-time delivery to fulfill export deadlines, suffers when raw material clearance at Chattogram
Port is delayed (Islam et al., 2021). According to a study by Rahman and Hossain (2020), delays at Chattogram
Port lengthened lead times by 15–20%, which caused exporters to lose sales and experience production delays.
Impact on Costs: Demurrage, storage, and transportation expenses are among the logistical costs that are raised
by ineffective port operations. These extra expenses are frequently transferred to customers, making exports
less competitive in international marketplaces (World Bank, 2022). For example, inefficiencies at Chattogram
Port raised logistical costs by 20–25%, making Bangladeshi exports less competitive in global markets,
according to a study by Ahmed and Mahmud (2019). Impact on Reliability: Businesses find it challenging to
efficiently plan and carry out their operations when supply chains are less reliable due to port inefficiencies.
This is especially troublesome for sectors like the pharmaceutical and perishable goods industries that depend
on timely deliveries (Meersman et al., 2012).
For example, delays in the clearance of pharmaceutical raw materials at Chattogram Port have been linked to
shortages of essential medicines in Bangladesh (Karim, S. M. N. 2024; Kabir and Helal, 2021). Similarly,
delays in the clearance of perishable goods, such as fruits and vegetables, have resulted in significant losses for
exporters and importers, further highlighting the need for efficient port operations (Du Plessis, F et al., 2023
Chowdhury et al., 2020). Challenges at Chattogram Port Chattogram Port, the principal seaport of Bangladesh,
faces significant challenges that contribute to clearance delays and supply chain inefficiencies. These
challenges include manual processes, understaffing, inadequate infrastructure, and inefficient customs
procedures (Sukanta et al., 2020; NBR and WCO, 2022).