The recent hike in fuel oil prices has begun to ripple through Bangladesh’s inland shipping sector, prompting moves to increase per-ton freight rates for lighter vessels that transport goods from Chattogram Port to destinations across the country.
In response, the Department of Shipping has convened a key stakeholder meeting on April 22 at 3pm at its conference room to discuss the adjustment or increase of freight rates. The meeting will be chaired by Commodore Md. Shafiul Bari, Director General of the department and president of the supervisory committee of the Bangladesh Water Transport Coordination Cell (BWTCC).
Officials say the initiative follows a formal application from lighter vessel owners seeking fare adjustments to offset rising operational costs.
Mirza Saifur Rahman, Chief Engineer and Ship Surveyor at the Department of Shipping, told Times of Bangladesh that importers, vessel owners, and other relevant stakeholders will participate in the meeting. “A decision on a reasonable fare adjustment will be taken based on the opinions of all parties,” he said.
Diesel, the primary fuel used in lighter vessel operations, saw a significant price increase effective April 19. The government raised the price from Tk100 to Tk115 per litre—a jump of Tk 15. Industry operators say the impact is immediate and substantial.
Haji Shafiq Ahmed, convener of BWTCC, explained that under current rates, transporting goods from Chattogram Port to Dhaka costs about Tk550 per ton. A typical lighter vessel consumes approximately 2,500 litres of diesel per trip. With the new price, this translates into an additional cost of Tk37,500 per trip. “The exact increase in per-ton freight will be discussed at the upcoming meeting,” he said, adding that the department’s final decision will be implemented across the sector.
A notice issued by the Department of Shipping on 20 April acknowledged that operating costs for lighter vessels have risen sharply due to higher fuel prices, making fare revision unavoidable. To review the situation comprehensively, representatives from at least 43 organizations—including ship owners’ associations, cargo vessel groups, inland vessel operators, shipping companies, and major industrial enterprises—have been invited.
Lighter vessels play a critical role in Bangladesh’s supply chain. They transport cargo from large ocean-going ships anchored at the outer anchorage of Chattogram Port to inland destinations. Industry estimates suggest that 70 to 75 percent of the country’s bulk imports—such as food grains, fertilizer, sugar, cement clinker, and industrial raw materials—are handled through this system.
Currently, around 2,000 registered lighter vessels operate at the port’s outer anchorage. Of these, 1,022 are under the Bangladesh Inland Water Transport Corporation, while 629 are privately owned. Additionally, major industrial groups in sectors like cement and steel operate their own vessels to carry imported goods.
However, the sector has already been under pressure in recent months. According to vessel owners, global disruptions linked to the Iran-Israel conflict created a fuel supply crisis, limiting diesel availability for lighter vessels. As a result, services on several river routes were disrupted, with nearly 200 vessels reportedly docked/stopped at one stage.
Stakeholders warn that the latest fuel price hike could deepen these challenges unless freight rates are adjusted. The Department of Shipping’s initiative is therefore seen as a necessary step to stabilize operations and ensure uninterrupted cargo movement.
Lighter vessels currently operate on at least 38 inland routes from Chattogram Port. Freight rates vary depending on distance, route, and cargo type, with existing charges ranging from Tk 550 to nearly Tk 800 per ton. Any revision decided at the April 22 meeting is expected to have a direct impact on transportation costs—and potentially on market prices as well.
