Fuel shortage threatens lighterage operations, raising fears of supply disruption

A growing diesel shortage is threatening the operations of lighterage vessels that transport bulk cargo from ships anchored off Chattogram port to destinations across Bangladesh, raising concerns of disruptions in the country's supply chain.

Industry insiders warn that if the fuel crisis persists, unloading cargo at the port's outer anchorage and transporting goods through inland waterways could be severely affected, potentially triggering shortages in domestic markets ahead of Eid.

A lighterage vessel typically requires between 2,500 and 5,000 litres of diesel per trip, depending on capacity. These vessels usually collect fuel from bunkering tankers, but supplies have become scarce after the government introduced rationing measures amid a broader fuel shortage linked to the ongoing conflict in the Middle East.

Distributors say the volume of diesel they are receiving from state-run fuel marketing companies is now less than half of the actual demand. As a result, many vessels remain unable to depart even after loading cargo.

Key link in supply chain

Bangladesh's inland waterways play a critical role in transporting imported commodities across the country.

Bulk goods arriving at Chattogram port on large mother vessels are unloaded at the outer anchorage and transferred to smaller lighterage vessels, which then carry the cargo to different river ports nationwide. Around 1,500 lighterage vessels are involved in transporting imported goods from the mother vessels at the outer anchorage of Chattogram port.

Any disruption in this system could affect the flow of essential commodities, potentially causing shortages in markets during the upcoming Eid season and pushing up prices.

Vessel operators struggling

Mohammad Jahangir Alam, owner of ANJ Trading, operates a fleet of 60 vessels, including both owned and chartered ships.

If we send a vessel on a long route, it needs around 5,000 litres at once. Unlike road transport, there are no refuelling stations along waterways. That's why we are avoiding long-distance trips. More than half of our vessels are sitting idle.

Mohammad Jahangir Alam, owner, ANJ Trading

His operations require around 2,05,000 litres of diesel each month. Under a distributor licence from Padma Oil Company, he normally lifts about 70,000 litres of diesel weekly to supply his vessels.

However, he said the company has not supplied any diesel since 3 March.

"For the past few days we have been managing local trips by giving only 400 to 500 litres of diesel to each vessel," Jahangir told TBS.

"If we send a vessel on a long route, it needs around 5,000 litres at once. Unlike road transport, there are no refuelling stations along waterways. That's why we are avoiding long-distance trips. More than half of our vessels are sitting idle."

'Supply cut by 25%'

Padma Oil Company Managing Director Mofizur Rahman said distributors are still receiving diesel supplies, though at a reduced level.

"According to government instructions, we are supplying 25% less than usual," he told TBS.

He added that several fuel shipments have recently arrived.

"One vessel arrived yesterday, another today, and another is expected tomorrow. Fuel supply should return to normal within a few days," he said.

Port cargo handling at risk

Parvez Ahmed, convener of the Bangladesh Water Transport Coordination Cell, said around 73 mother vessels carrying various bulk commodities are currently waiting at the outer anchorage of Chattogram port.

The coordination cell allocates about 100 lighterage vessels daily to transport cargo from these ships to destinations across the country.

"These lighterage vessels require around 4,00,000 to 5,00,000 litres of fuel every day for their operations," he said.

Due to the shortage, many vessels loaded with cargo are now floating in the Karnaphuli River, unable to sail without adequate fuel.

"If the vessels cannot depart, cargo cannot be unloaded from the mother vessels. This could disrupt the supply of food and other essential goods and create instability in the market," Parvez said.

He added that the coordination cell has written to the government requesting uninterrupted fuel supply for lighterage vessels in order to maintain commodity prices, protect the reputation of Chattogram port and keep the national economy functioning smoothly.

Call for urgent action

Sarwar Alam Sagar, president of the Bangladesh Ship Handling and Berth Operator Association, warned that prolonged disruption in waterway cargo transport could collapse the country's supply chain.

"If cargo movement through waterways is disrupted due to the fuel shortage, the supply system could break down and create a humanitarian crisis," he said.

"The government should ensure adequate fuel supply for lighterage vessels to keep the supply chain running."