Dhaka-Ctg transport fare almost halves amid dwindling cargo delivery

The transport fare for goods carriers on the Dhaka-Chattogram route has fallen by nearly 50% compared to normal times, marking its lowest in seven years, due to a downward trend in cargo deliveries at Chattogram port.

Thousands of freight trucks and covered vans are now idly parked in Chattogram's Nimtala and Kadamtali areas, with drivers and their assistants facing a prolonged period of unemployment, leaving in acute financial distress and uncertainty.

The reduced cargo deliveries are due to dwindling garment factory orders and subsequent decrease in consumer goods transportation, say transport operators.

In normal times, the average freight fare for a covered van on the Dhaka-Chattogram route ranged between Tk15,000 and Tk19,000, which has now dropped to Tk10,000-12,000, said transport owners. 

During Ramadan last year, transporting soybean oil drums to Dhaka cost Tk28,000 per trip; now, it costs just Tk15,000. Similarly, the fare for transporting sugar has dropped from Tk30,000 to Tk13,000-15,000 for a 12.5-tonne truck.

Meanwhile, larger open trucks and trailers are facing even worse demand shortages, with many vehicles unable to secure any trips at all.

Iqbal Hosen, a truck owner from Nimtala, said, "I have been in this business for 29 years, but I have never seen fares this low in the past six-seven years. Normally, Ramadan leads to a heightened demand for the transportation of goods. However, the circumstances are quite different this year. Thousands of trucks are sitting idle due to a lack of demand."

Chowdhury Jafar Ahmed, secretary general of the Bangladesh Covered Van-Truck-Prime Mover Transport Owners' Association, echoed the concerns, stating, "In Ramadan, transport fares usually increase, but this year, they have hit rock bottom. Transport owners, drivers, and workers are all left with uncertainty."

A covered van driver in the city, Md Saiful Islam, said he has turned jobless as his employer is now managing multiple vehicles with just one driver. "Now, I am unemployed and struggling to support my family. I am looking for work in mills or factories."

Wazi Ullah, secretary general of the Bangladesh Truck Drivers Workers Federation, acknowledged that freight rates fluctuate based on transportation demand. "Fares have dropped due to low demand at present."

He said he is optimistic that the situation will improve soon.

However, former BGMEA vice president Raqibul Alam Chowdhury said Chattogram has received sufficient garment orders, in contrast to other parts of the country, which have witnessed a downturn. "This may have impacted transport fares nationwide, as transporters operate across the country," he explained.

Garment factory owners typically receive orders from foreign buyers twice a year – in April and October. However, after completing last April's orders, many owners did not receive new orders in October due to economic uncertainty. As a result, garment shipments have dropped significantly.

Usually, 4,000-5,000 containers are delivered from the port daily, which had dropped to almost half in the beginning of March. According to the port performance report, until 10 March, the delivery of containers remained below 3,000 TEUs (twenty-foot equivalent units).