Industry And Cluster | News & Insights

High transportation expenses put a strain on RMG exporters

Published: August 23, 2021
Author: Manali bhanushali
Garment exporters are feeling the sting of excessive transportation costs as the resurgence in product shipment due to the reopening of the global economy has increased demand for trucks and covered vans.
Trucks and covered vans with a capacity of six to seven tonnes charge up to Tk 20,000 and Tk 25,000, respectively, to transport clothing from Dhaka and its surrounding districts to the Chattogram port.
When there was a hurry to transport items before Eid festivities, the price rose up to Tk 30,000 and Tk 40,000.
Garment exporters are in big trouble because of high transport costs, shortage of containers in the port. Garment exporter spent Tk 30,000 to Tk 35,000 a day to move goods from his Narayanganj-based factory to the port after the Eid holiday. International retailers and brands are not paying increased prices for the goods exported due to lack of demand.
Fares for covered vans and trucks in the port of Edo Mia have reached Tk 30,000 per covered van from Tk 14,000 last month. The increase was due to traffic congestion caused by the Eid-ul-Fitr holiday, a transport agency manager said. He blamed the high number of vehicles at the port for the increase in fares.
Bangladesh’s port operator AM Transport now charges between Tk 20,000 and Tk 25,000 per covered van for transporting goods from Dhaka to Chattogram. The freight charge between Chattogram port and Shanghai port has risen by 400 per cent. Some 70,000 cargo-carrying trucks and covered vans ply between Dhaka and Chattogram every day.
The cost of shipping has risen abnormally as demand has gone up because of the rebound of the global economy, a senior trade official said. Mostofa Azad Chowdhury Babu said nobody had informed the apex trade body about the unusual transport fare hike. He said if anybody lodges complaints with the FBCCI, we will call a meeting to discuss the issue to resolve it.

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