Rising fuel prices have pushed up costs across most sectors in Bangladesh, but road freight transport is proving an exception. Despite higher diesel prices, freight rates have remained unchanged, as a shortage of goods forces many operators to accept lower fares.
The result is a slowdown across the sector, with thousands of trucks, covered vans and prime movers sitting idle in different parts of the country.
Industry insiders say there is no fixed policy to determine freight rates in Bangladesh, with pricing largely driven by supply and demand.
Chowdhury Zafar Ahmed, general secretary of the Bangladesh Covered Van-Truck-Prime Mover Goods Transport Owners Association, said operating costs have risen significantly due to higher fuel prices, but weak demand has prevented any increase in fares.
“Normally, when demand for goods transport is high and vehicles are limited, fares go up,” he said. “But now the situation is the opposite. There are more vehicles than goods. In many cases, we are running at previous rates or even lower.”
The sector had seen strong demand ahead of Ramadan, when imports typically increase. However, import activity has slowed in the post-Ramadan period, reducing demand for freight transport and keeping rates flat.
Industry players warn that if imports pick up again, freight charges could rise by Tk 4,000 to Tk 5,000 per trip.
Around 10,000 cargo vehicles operate daily from Chattogram Port, Khatunganj and surrounding private depots, forming a critical part of the country’s logistics network. But the current shortage of goods has significantly slowed operations.
Drivers and transport workers say they are no longer getting regular trips. Many are waiting days for work, leading to a sharp drop in income. Several drivers said that while they used to get two to three trips a day, now they often do not get even one.
Transport owners say rising fuel costs have increased per-trip expenses without a corresponding rise in income, pushing many into losses. Some are even considering halting operations altogether.
Traders say a slowdown in imports and domestic supply has reduced the flow of goods in the market, directly affecting the transport sector – particularly for import-dependent commodities.
Analysts say the stagnation is unlikely to ease until supply normalises. They also warn that prolonged fuel price pressures could have deeper, long-term effects on the sector.
Industry stakeholders are now calling for a clear and structured freight rate policy. They said that if a fixed policy were in place, the sector would not be so affected by market fluctuations.
