Bangladesh’s export to Europe goes to have a a lot much less lead time and price from February as a direct freight service is ranging from Chattogram port to Europe – the nation’s greatest attire export vacation spot.
The primary ship on the route, carrying export items, will go away Chattogram for the Port of Ravenna in Italy within the first week subsequent month.
Initially, two ships will transport export containers from Chattogram on the route each 25 days.
It can take simply 16 days to achieve Italy for a ship by means of this route, which at present takes about 40 days as they should journey through a number of transshipment ports.
Businessmen and Chattogram port officers anticipate that the direct route will scale back the cargo price by round 40%.
Italian transport firm Kalypso Compagnia di Navigazione SPA Italy will transport Bangladeshi export items through two container vessels – the Cape Flores and the Songa Cheetah.
The Cape Flores is the flagship of the Marshall Islands with a draught of 8.66 metres – the depth of water wanted for a ship to drift – and a container capability of 1,200 twenty-foot equal models (TEUs). Its size is 154.47 metres and width 25.19 metres.
The Songa Cheetah is at present on its technique to Chattogram port. The Liberian flagship with a draft of 6.2 metres will arrive on the port on 5 February.
Reliance Delivery and Logistics is working because the native agent of the 2 ships in Bangladesh.
Mohammed Rashed, chairman of Reliance Delivery and Logistics, mentioned, “Songa Cheetah left the port of Ravenna, Italy on 17 January with 945 TEUs of empty containers and seven TEUs of containers with clothes and uncooked supplies. It can attain Chattogram port on 5 February. The ship will sail for Italy on 7 or 8 February with containers.”
“The ship will carry about 16,500 tonnes of export items in round 1,100 TEUs of containers. Of this, 98% are readymade clothes and the remaining 2% are handicraft, leather-based and jute merchandise. As soon as the products attain the port of Ravenna, they are going to be delivered to varied locations in Europe as per the demand of the patrons.”
The Cape Flores had already arrived at Chattogram port on 24 December with empty containers.
Presently, Italy-bound container ships from Chattogram port first have to achieve a European base port such because the Port of Rotterdam within the Netherlands, the Port of Antwerp in Belgium and the Port of Hamburg in Germany through transshipment ports similar to Singapore, Colombo in Sri Lanka, Tanjum Palapas and Kelang in Malaysia and some in China. From there, they’ll go to Italy.
In some circumstances, items are carried to Italy in mom vessels straight from the transhipment ports. However, more often than not, containers are unloaded at European base ports within the absence of the mom vessel’s schedule in Italy. From there, items are shipped to Italy in feeder vessels.
A shot within the arms for export commerce
Merchants mentioned this initiative will scale back prices in export-import commerce together with the fastened working price of ships and strengthen Bangladesh’s place within the aggressive market.
Based on individuals involved, 51% of Bangladesh’s export commerce is with Europe.
Due to this fact, if this route turns into well-liked, it would create a brand new milestone within the export sector of the nation, they mentioned, including it would entice new patrons and broaden the nation’s export sector.
Rear Admiral M Shahjahan, chairman of the Chattogram Port Authority (CPA), instructed The Enterprise Commonplace, experimental transport on this route has already been accomplished efficiently.
In April final yr, about 25,000 Bangladeshi containers with imported items have been caught at transshipment ports in Sri Lanka and Malaysia which affected merchants as their manufacturing was stopped because the uncooked supplies couldn’t attain the manufacturing unit on time. These containers have been later dropped at Chattogram port by further feeder vessels.
Merchants mentioned the import-export commerce of Bangladesh is being affected because of congestion in transshipment ports.
Based on knowledge supplied by the Chittagong Port authorities, the premier seaport within the nation dealt with over 15.25 lakh TEUs of export containers in 2021. Final December, it dealt with over 1.30 lakh TEUs of export containers.
Port sources instructed TBS that they don’t have any statistics as to how a lot of those items is transported to Europe or to different continents since they’re shipped to their locations after being unloaded in transshipment ports.
The Bangladesh Garment Producers and Exporters Affiliation (BGMEA) and the Delivery Brokers’ Affiliation, nevertheless, say 55% of the general export commerce of the nation is finished with European nations.
Attire accounts for some 82% of Bangladesh’s whole exports. Due to this fact, contemplating that on a mean some 1.27 lakh TEUs of export containers left Chattogram port for varied locations each month final yr, the quantity of common month-to-month attire exports final yr was about 1.4 lakh TEUs, of which over 57,200 TEUs went to Europe alone.
Syed Nazrul Islam, first vice-president of Bangladesh Clothes Producers and Exorters Affiliation (BGMEA), mentioned, “Europe is the most important marketplace for the clothes trade of Bangladesh. The brand new route will halve the present transport price. It is rather constructive information for the nation’s export sector.”
Syed Iqbal Ali Shimul, senior vice chairman of Bangladesh Delivery Brokers Affiliation, mentioned at current, about 51% of Bangladesh’s export merchandise go to Europe, 25% to America, 20% to Asia and 4% to Canada.
Sources with transport strains mentioned international patrons take merchandise from Bangladesh on Free on Board (FOB) foundation, during which case the patrons bear the transport fare.
At current, the fare for transporting a 40-foot container ship from the transhipment ports to Italy ranges between $10,000 and $14,000 relying on transport strains, individuals involved mentioned, including the freight cost may very well be $6,000-$7,000 on the brand new route.
Chattogram port accounts for 92% of the whole export-import commerce of Bangladesh. Apart from, 98% of the container cargo is finished right here. Nevertheless, the exporters are generally compelled to ship their merchandise by air after lacking the schedule of the export ships. This will increase the transport price manifold.
Rakibul Alam Chowdhury, vice chairman of BGMEA, mentioned, “There stays a threat of lacking the mom vessel even when the feeder vessels are late for at some point to achieve the transshipment port. In lots of circumstances, ships go away the Chattogram port with out taking the products to get the schedule of the mom vessel. This makes it unsure to ship the product to the purchasers on the stipulated time. On this scenario, the brand new transport route with Europe has created enormous potential for Bangladesh’s export sector.”
Merchants have additionally advised the authorities create extra routes for direct container ship motion to different ports in Europe and America.
Mahbubul Alam, president of Chattogram Chamber of Commerce and Trade, mentioned, “It is a nice achievement for Bangladesh. Direct transport with Europe will add a brand new dimension to the nation’s export sector. Nevertheless, the authorities should make sure that the service continues with none disruption.”
Syed Mohammad Arif, chairman of Bangladesh Delivery Brokers Affiliation, mentioned, “Numerous prices should be paid in several levels to ship merchandise to Europe. Direct transport of products will save an enormous sum of money. International patrons shall be benefitted as the price of transporting items shall be decreased. This may play an enormous function in creating new patrons.”
What led to the initiative?
The primary-line operators (MLOs) beforehand didn’t take any steps to launch direct container companies with Italy as a result of getting sufficient cargo could be an enormous problem if such companies have been launched. Most important-line operators are carriers using vessels in the primary or principal routes in a commerce however not taking part inside a consortium.
Rashed mentioned the primary strains will not be offering enough containers amid the pandemic scenario, resulting in as excessive as 10 occasions improve in freight prices, in some circumstances.
“The principals are at present struggling due to these points. They’re struggling to ship merchandise on time even after spending extra cash. So our principal has determined to rent ships and carry the containers themselves.
“Towards such a backdrop, the Chattogram-Italy direct container transport has began. It’s anticipated that different main-line operators will even take initiatives to start out transport on this route. Then, freight prices will go down additional.”
Principal means the agency or one that is the proprietor or charterer or supervisor of the vessel represented by an organization and/or the provider below the invoice of lading in reference to which companies are supplied by the corporate.
A lot of the European nations have street connectivity between them, Rashed talked about, including, “After the products arrive in Italy, a majority of these shall be delivered to their locations by street. The products that have to be transported by waterway shall be delivered to their locations in feeder vessels.”
Giant transport strains nonetheless much less
Ajmir Hossain Chowdhury, assistant basic supervisor of Mediterranean Delivery Firm, instructed TBS that they view the difficulty of direct transport with Italy in a constructive mild. Nevertheless it stays to be seen how profitable this initiative turns into, he added.
“Right here items of a specific transport line shall be transported, the quantity of which could be very low. Apart from, mom vessels can not anchor on the internal anchorage of the Chittagong Port due to its shallow depth. Due to this fact, items should be transported to Italy by small ships. This entails the danger of accidents.”
Mentioning that enormous transport strains are much less focused on transport to Italy with smaller ships, he mentioned the transport strains will come ahead to move items on to Europe as soon as the Bay Terminal turns into operational.