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Freight costs from Chattogram up 25% after fuel hike

Freight costs from Chattogram up 25% after fuel hike
Photo: Zakir Hossain/TIMES
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A government-mandated Tk20-per-litre increase in fuel prices has triggered a surge in goods transportation costs from Chattogram across the country, putting heavy pressure on both waterway and road freight rates.

From Monday, the prices of diesel and kerosene were raised from Tk115 and Tk135 to Tk135 and Tk155 per litre, respectively, while petrol and octane prices rose from Tk140 and Tk145 to Tk160 and Tk165 per litre.

Road freight charges from Chattogram to Dhaka and other destinations have already escalated by approximately 25 per cent following the fuel price adjustment.

On the Dhaka–Chattogram route, freight charges for trucks and covered vans have increased from Tk30,000–32,000 to Tk35,000–40,000. More than 10,000 trucks and covered vans operate along this critical commercial corridor every day.

Chowdhury Jafar Ahmed, secretary general of the Bangladesh Covered Van, Truck and Prime Mover Goods Transport Owners Association, told TIMES of Bangladesh that the transport sector is under severe financial pressure due to the sharp price increase.

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He explained that the round-trip operating cost alone for a covered van on the Dhaka–Chattogram route has jumped from Tk25,000–26,000 to Tk31,000–32,000.

After adding drivers’ wages, tyre costs and other maintenance expenses, operating vehicles at previous rates is no longer possible, requiring charges of Tk35,000–40,000 to offset rising operational costs and keep transport services viable.

Concurrently, lighter vessel owners operating on inland waterways are preparing to raise freight rates by 25 to 30 per cent.

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Waterway transport plays a critical role in national supply chains, as more than 70 per cent of goods imported through Chattogram Port are unloaded at the outer anchorage and transferred from mother vessels to smaller lighter vessels, which then carry cargo to at least 34 destinations across the country, including Dhaka.

Around 2,000 lighter vessels owned by individuals, companies and industrial groups operate from Chattogram Port.

The Bangladesh Water Transport Coordination Cell (BWTCC) manages the scheduling and operations of vessels under its coordination, excluding those owned and operated by industrial enterprises.

Sheikh Mohammad Jahangir Alam, a member of the BWTCC and a lighter vessel owner, stated that the current freight rate on the Dhaka–Chattogram route is Tk586 per tonne. “Considering the overall situation in the country and the increase in fuel prices, we are planning to raise lighter vessel freight rates by at least 25 to 30 per cent,” he said.

Khurshid Alam, general secretary of the Bangladesh Cargo Vessel Owners Association (BCVOA), told TIMES that a lighter vessel with a capacity of 1,000 to 1,200 tonnes requires approximately 2,500 to 2,800 litres of fuel for a round trip between Dhaka and Chattogram.

He said Tk 20-per-litre price increase has pushed the fuel cost for each trip up by Tk50,000 to Tk56,000.

Alam added that vessel owners held a meeting on Monday with leaders of the Chattogram Chamber of Commerce and Industry and the Port Users Forum to discuss the impact of the hike and the proposed rate adjustment.

To determine revised rates, the BWTCC is scheduled to hold a joint meeting in Chattogram on 23 September with representatives of three major vessel owners’ organisations – the BCVOA, the Inland Vessel Owners Association of Bangladesh (IVOAC), and the Coastal Vessel Owners Association (COAB).

Shafiq Ahmad, president of the Inland Vessel Owners Association of Chattogram (IVOAC) and convener of the BWTCC, said an increase in waterway transportation costs was inevitable.

He noted that preliminary estimates suggest a Tk20-per-litre increase in diesel prices could raise transportation costs by up to Tk50 per tonne for a 1,000-tonne vessel operating on the Dhaka–Chattogram route, though this figure does not yet include indirect and ancillary expenses such as spare parts, repairs and overall vessel maintenance.

Transport owners warned that these combined cost increases will ultimately drive up the price of transporting goods from Chattogram Port, Khatunganj, and other wholesale markets to destinations nationwide.

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