Transportation cost in lighter vessels to rise with new policy feared

Chattogram Bureau :

The cost of goods transportation via lighter vessels is set to increase as the Department of Shipping has reintroduced a controlling structure that many fear will lead to syndicate dominance. Following the abolition of the serial system in 2023, which had reduced transportation costs for imported goods by at least 20% across 34 waterways, a new policy implemented on 15 October last threatens to reverse these gains.
According to ship owners, importers, and a ship owner organisation based in Chattogram, freight rates were previously determined through negotiations between importers and vessel owners. The establishment of this new cell has eliminated that opportunity, resulting in increased transportation costs and, consequently, higher prices for goods in the market, they said. According to the new policy, the lighter vessel owners will now operate under the “Bangladesh Water Transport Coordination Cell” (BWTCC), which will be coordinated by three associations of lighter vessel owners.
BWTCC will act as a coordinator with all stakeholders involved, including lighter vessel owners, importers, product agents, and local agents, for the allocation of lighter vessels. A 10-member supervisory committee has been formed to monitor the activities of the cell. The committee will be chaired by the director general of the Department of Shipping or its representative, with the secretary being the chief engineer and surveyor of the department.
Sheikh Mohammad Jahangir Alam, managing partner of ANJ Trading, a lighter vessel owning firm in Chattogram, told The New Nation that although the goods transportation policy has been put in force, the freight rate has not been set. It should be determined by representatives of importers.
He noted that when the Water Transport Coordination Cell was operational, the freight charge per tonne for wheat-laden goods from Chattogram Port to Dhaka was Tk662. Following dissolution of the cell, freight rates are now being determined based on the preferences and negotiations between importers and vessel owners. “The freight per tonne has decreased by around Tk150, which has pleased importers and general vessel owners. The new cell seems to be an attempt to return the goods transportation sector to the same syndicate,” he added.
Mohammed Amirul Haque, chairman of the Seacom Group, a large importer of cement and various consumer goods, said that a business syndicate based in Dhaka controlled the operation of lighter vessels under the syndicate [WTCC].
Engineer Mehboob Kabir, chairman of the Coastal Ship Owners Association of Bangladesh and general secretary of the Bangladesh Cargo Vessel Owners Association, told that operating vessels without a serial has significantly lowered freight charges, resulting in losses for vessel owners.