Amid a chaotic situation prevailing in the shipping business, a new shipping service has been introduced to facilitate the shipment of export and import cargoes between Bangladesh and Europe.
RIF Line, a leading forwarder, and its subsidiary Kalypso Compagnia Di Navigation SPA of Italy brought in the new service which is claimed to be an innovative one to mitigate the sufferings in external trade activities.
“This new service will contribute hugely to the export trade, decrease the transit time and will encourage more buyers from Europe,” Mr Rashed Ahmed, Bangladesh representative of the service, told the FE.
As the economic activities reopened immediately after the Covid-19 pandemic, the shipping lines have been charging exorbitantly high freight, creating an unbearable situation for the trade activities, insiders said.
They said the buyers of clothing products and the importers were paying freight charges that had peaked at US$20,000 per 20-foot equivalent unit (TEU) as on the back of a reduced capacity of the global shipping industry after the reopening of global economies.
The global shipping giants like Maersk Line, MSC, CMA, CGM were charging such high freight, taking advantage of reopening of the economies after the Covid-19 pandemic.
The volatility in the shipping sector intensified for more than the last six months. The freight between the Ctg and
Europe route is now at least 750 per cent higher than the pre-Covid period.
Europe is the biggest destination for Bangladesh made exports having around 55 per cent share of its total shipment.
Insiders said the situation is so chaotic that there is no guarantee of getting space or containers despite the high charges of freight. The shipping operators are giving preference to those who pay the highest freight charges, they added.
Such intolerable conditions have forced the buyers to explore new services and alternatives, according to the shipping circle.
They said that the new and innovative service has come as a relief to the buyers of clothing products who pay the freight. The local importers also benefit from this shipping line in terms of freight cost, they said.
The prices of all types of products, especially the imported ones, have surged significantly in recent months despite the fact that it has no contribution to the official count of inflation by the Bangladesh Bureau of Statistics.
Mr Rashed said they have planned to continue their new service on a sustainable basis with chartered vessels.
The shipping executives, however, hinted that the clothing buyers may save at least $6,000 per TEU thanks to the new service.
The maiden vessel, MV Cape Flores, carrying 975 TEUs of containers is expected to take berth at the Chattogram port today (Thursday). It has 1,200 TEUs of capacity and is gearless.
The name of the route is Civitavecchia, Italy to Chattogram, Bangladesh.
The vessel will discharge 975 TEUs of empty containers for stuffing in Ctg. In its next voyage, the containers will be loaded for shipment meant for Europe.
It will discharge four loaded imported containers in the port. After discharging in Ctg, it will leave for China and then Italy. Again, it will come to Ctg to take the loaded containers for the European destinations.
