Lighterage freight rates to jump 10% in inland waterways following hike in diesel prices
With the 10% increase, the base freight rate per tonne will now be Tk605
A unanimous proposal has been made to increase the freight rates of lighterage ships used for transporting goods on inland waterways by 10%, following the recent 15% rise in diesel prices, Department of Shipping Director General Commodore Shafiul Bari said today (23 April).
Speaking to The Business Standard, he said a circular regarding this will be issued on Sunday (26 April) after obtaining consent from the Ministry of Shipping.
"A meeting was held yesterday with stakeholders regarding the fare hike, where various parties proposed increases ranging from 8% to 20%. After calculating everything, we made a reasonable proposal of 10%, which everyone accepted," he said.
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The development comes just days after the government raised fuel oil prices to rein in mounting subsidies. Diesel prices were hiked by around 15% to Tk115 per litre.
The adjustment has had an immediate effect on transport fares and commodity prices, reflecting Bangladesh's heavy reliance on diesel-powered logistics.
Commodore Shafiul Bari further said ship owners' associations usually increase fares in consultation with importers.
"This time, they proposed discussions through us, and we reached a unanimous decision after sitting down with all parties."
He mentioned that the Seaman Factory Owners' Association was initially unwilling to increase the fare by more than 5%, but they eventually agreed.
Parvez Ahmed, spokesperson for the Bangladesh Water Transport Coordination Cell, said, "We could have increased the fare ourselves through discussions if we wanted to.
"However, this time we wanted the process to follow a set of rules. Therefore, the Shipping DG was requested to organise the meeting."
He noted that previously, the base rate for transporting per tonne of goods on the Dhaka-Chattogram route was Tk550.
"We had proposed an 8.5% increase, while other associations proposed a 15% hike."
He added that with the 10% increase, the base freight rate per tonne will now be Tk605.
Transporting imported goods from the outer anchorage of Chattogram Port across the country via waterways costs less than half compared to road transport.
More than 2,500 lighterage ships are engaged in this transport.
Although it takes slightly more time, the lion's share of goods is transported by water.
Ultimately, this 10% additional fare resulting from the fuel price hike will be borne by the consumers, leading to an increase in inflation.
