Import-export costs hit by fuel price at Ctg Port

As the vessels to and from Bangladesh are collecting fuel from Singapore, there is no fear of increasing the freight rate on the international route, said the authorities concerned.

However, the rise in fuel prices in Bangladesh will certainly affect product handling, transport charges in Inland Container Depots ICD, export and import costs of goods, they said.

The price of fuel in Bangladesh has nothing to do with shipping freight on international routes, President of the Shipping Agents Association Syed Mohammad Arif said.

Ships coming to Bangladesh do not take fuel from here. Most of the ships are collecting oil from Singapore and other ports.

He also said no issue of increase in fare is involved even if any ship ever takes oil from Bangladesh on an emergency basis.

Currently, the fare of a 40-foot container on the Europe-America route from Bangladesh is more than $12,000, which is quite high compared to usual time, shipping agents say.

Chattogram Port sources said the ships under the International Maritime Organization (IMO) regulations have to use Very Low Sulphur Fuel Oil (VLSFO), which is not available all time and that is why ships is not bunkering here.

Sometimes the foreign ships collect VLSFO from 200 tonnes to 1500 tonnes per ship but it is not possible to supply it because Bangladesh does not have enough imports and that’s why ships bring this oil from other ports, said Mizanur Rahman Mazumder, Bangladesh Bunker Suppliers Association.

He added that the price of this oil is fixed internationally and it can be imported with duty-free facilities. Currently, the price of VLSFO per tonne is about 750 USDs, which was 1000 dollars per tonne a few days ago.

However, international freight forwarders said despite no increase in shipping rates on the international route the cost of importing to and exporting from Bangladesh is naturally increasing as the cost of everything locally, especially vehicle fare, has increased.

There is a discussion among the sectors about increasing the charges of the ICDs that handle export products.

Previously they increased the charges by 23 percent after the increase in oil prices last February and now they have proposed to increase the fares again, said Vice Chairman of Bangladesh Freight Forwarders Association Khairul Alam Sujan.

The increase in charges of ICDs will directly increase the total export and import costs of 35 items of goods as the shipment and delivery processes of these products are done at ICDs, he added.

In addition to this, the cost of transporting goods to and from Chattogram Port will also increase. Vehicle owners have already started collecting additional fares and they are demanding at least a 50 percent increase in fares.

The fare of a truck, covered van, and similar vehicles for transporting goods from Chattogram to Dhaka was fixed at Tk20, 000 but since the fuel price hike the owners of vehicles charged Tk25, 000-Tk30, 000.

On the other hand, the cost of transporting imported goods from Chattogram Port to the river route has not yet increased. Sources from the lighterage ship regulating agency Water Transportation Cell said soon the increased fare would be decided after discussing with the government and the parties involved.