This week, the container ship Spica J will depart Chattogram for Rotterdam, Netherlands, launching a new direct freight route between Bangladesh and the Netherlands, says an article published in The Business Standard.
New horizons for external trade
This will be Chattogram’s fourth direct shipping service since February, with company leaders claiming that direct shipments will open up new frontiers for external trade amid a global supply chain shock.
Three vessels will transport products, according to Reliance Shipping and Logistics, the local shipping agent for the latest freight route.
The ships will leave Chattogram for Barcelona, Spain after arriving in the Netherlands.
Exporting goods
“Spica J is now at the outer anchorage of Chattogram port. It will leave Bangladesh on 31 May or 1 June with 500 TEUs [twenty-foot equivalent units] of exporting goods,” Mohammad Rashed, chairman of the shipping agent, told The Business Standard.
Transshipment ports
Currently, container ships departing from Chattogram stop at transshipment ports in Malaysia, such as Tanjung Pelepas or Klang, Singapore, Colombo, or China, before continuing on to Europe.
Export consignments arrive at their final destination via European base ports such as Rotterdam, Antwerp, and Hamburg.
The entire journey takes about 40 days, and each container’s freight cost is roughly $12,000.
Direct shipping to the Netherlands, on the other hand, will cut the time to 20 days and minimise freight costs by 20% -30%.
Prompt competition
Bangladesh Shipping Agents’ Association chairman Syed Mohammad Arif said direct shipping to Europe is tremendously beneficial to the country’s economy.
“Increased freight traffic will prompt competition among shipping companies, leading to a reduced freight charge. Businessmen have already started reaping the benefits of direct shipping on three routes.”
The first direct shipment from Chattogram port began on February 7th, launching the Chattogram-Italy route.
RifLine, an Italian freight forwarder, introduced the service.
So far, the company has used four ships to import and export commodities six times, with each trip taking 18-20 days.
Transporting export commodities
The container ship Cape Flores will arrive at Chattogram port on June 8, according to Abul Kalam Azad, head of RifLine.
The ship will transport commodities to Turkey and Italy on its next voyage.
The Chattogram-Rotterdam-Liverpool route was started on May 20 by London-based freight forwarder Allseas Global Logistics.
Ships transporting export commodities from Chattogram will use the service to travel across the Suez Canal to Rotterdam, Netherlands.
The ships will next go to the port of Liverpool in the United Kingdom, where they will be unloaded.
Imported commodities will be transported to Chattogram using the route’s vessels.
Join the fleet
The direct freight service, according to Captain Syed Sohel Hasnat, chief executive officer of Phoenix Shipping Limited, a local representative of Allseas Global Logistics, can deliver products to the UK in 23 days.
The journey to the UK via transshipment ports in Singapore or Colombo takes roughly 35-40 days.
The Mediterranean Shipping Company, located in Switzerland, launched the Chattogram-China-Hong Kong direct container shipping route on May 24.
On the route, four ships are now operating, with two more ships expected to join the fleet soon.
Signing shipping contracts
Several additional countries have showed interest in establishing direct shipping contracts, according to Rear Admiral M Shahjahan, chairman of the Chattogram Port Authority.
Portugal, Slovenia, and a few Middle Eastern countries are among them.
Direct container shipping will start soon on all three routes.
Direct freights with European countries, according to Rakibul Alam Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), have opened great possibilities for external commerce.
“This is a great achievement for Bangladesh, and the authorities must ensure that this service is not disrupted.”
Chattogram port accounts for 92% of Bangladesh’s external trade. It also handles 98% of the country’s container shipments.
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Source: The Business Standard
