CPA Lifts Fixed Freight Rates

Industry: Freight Forwarding, Logistics & Shipping, Shipping

The Chittagong Port Authority (CPA) has removed fixed freight rates, allowing vessel owners and mainline operators to negotiate charges freely. The previous fixed rate, imposed in 2022, faced strong opposition from businesses due to high costs and irregular vessel movement. To improve efficiency, CPA has also mandated a fixed vessel schedule, ensuring at least five vessels per month on the route. Pangaon Inland Container Terminal (ICT), developed for Tk 154 crore in 2013, has struggled due to high charges and slow clearance times, leading to a 90% drop in container transport in 2024. However, the latest policy changes show signs of revival, with 459 TEUs transported and seven vessels operating in the last two months. Industry leaders, including BKMEA President Mohammad Hatem, have welcomed the move, emphasizing that a stable schedule and competitive freight rates are essential for businesses, particularly Narayanganj’s knitwear exporters, who contribute 40% of Bangladesh’s $25 billion knitwear exports.

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