Bangladesh’s largest port, Chattogram, has started direct routes to Europe, but apparel manufacturers hoping to shrink travel times may face delays from monsoon season and port congestion throughout Asia.
The South Asian hub started directly shipping goods to Europe for the first time beginning in February, using large container vessels.
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Previously, Chattogram used smaller feeder vessels that transferred containers at other Asian ports, with shipments typically taking 30 to 35 days.
Delays at Chattogram, which recently ranked last in the region by the World Bank’s latest Container Port Performance Index, may get in the way of significantly reducing that time frame. The port has seen an average of 28.3 vessels in its waters this month, the largest monthly tally since Bloomberg started tracking the data in April 2021.
Floods and a four-day holiday to start the month contributed to a 25 percent monthly increase in traffic at the port, which ranked fourth in total container TEU handled in 2020 in South Asia by Lloyd’s List.
Ports in Bangladesh have also been hit by the global shortage of container boxes, affecting the import of construction materials and export of textiles during the pandemic, according to traders and freight forwarders. While Chattogram has rail connections to India, its ability to serve as a transhipment hub for the subcontinent has been hampered by everything from bureaucracy to shipping lines canceling sailings to recover from delays in other parts of the world.
“Bangladesh introduced direct shipping for two reasons –- soaring freight costs and congestion at transhipment ports, said Syed Sohel Hasnat, chief executive officer of Phoenix Shipping Ltd. “On top of that, direct shipping takes less time to reach European ports,” he said.
However, he said, there is sometimes congestion at Chattogram due to holidays and effects of the monsoon season, which is a season factor. “We often see the big carriers go beyond the 25-day standard schedule and take as long as 30 days to reach a destination in Europe,” Hasnat said.
With Bangladesh’s manufacturing sector seen to expand 12 perent this year, the handling of traffic at the port will be central to the nation’s aims for export growth. The hub recently came into conflict with the city’s tourism goals, as port officials directed ships to anchor 300 meters away from the coastline to allow tourists to enjoy the view.
On Tuesday, the total vessel tally in Chattogram’s port and anchorage area was 23, four above the 2021-2022 median calculated by Bloomberg.
Read more: Bangladesh exports rise 15 pct to $38.76 bln as global demand for garments rebound
