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Fall in container freight charges drives down external trade cost

Thursday, 24 May 2007


Jasim Uddin Haroon
The cost of external trade has fallen sharply due to decrease in the container freight costs charged by the feeder vessels plying to and from Chittagong port.
Feeder vessels connect Chittagong port with Singapore, Colombo and two ports in Malaysia.
But, bulk of the cargoes ply between Singapore and Chittagong.
 The feeder owners said they had reduced the freight charges on the routes on an average by US$ 50 for each container following marked improvement in the container operation at Chittagong port.
They said the freight cost between Singapore and Chittagong port is now being charged between $ 250 and $260 for each 20-foot loaded container. Earlier the charge ranged between $ 290 and $ 310.
The freight of carrying empty container on the same route has now come down to $ 90 from previous charge between $ 140 and $150.
The feeder operators said that they were charging less following improvement in the ships turnaround time.
  The average turnaround time of feeder vessels from May 1 until May 20 at the port was below four days.
The berthing duration of vessels at the port was 4.84 days in April, 8.74 days in March, 8.69 in February and 11.65 days in January this year.
It was over 13 days in December 2006 and 22 days during the October-November political chaos last year.
Gearless vessels berth at the Chittagong Container  Terminal (CCT) and the handling is done by the modern gantry cranes.