In FY22-23, the volume of cargo transported by local vessels between India and Bangladesh decreased by 13 percent compared to the previous year. The decline in imports, particularly of fly ash and raw materials for cement mills, contributed to this drop. Data from the Bangladesh Inland Water Transport Authority (BIWTA) revealed that 41 lakh tonnes of goods were transported via waterways, down from the record 47 lakh tonnes in the previous year. This was the first decline in cargo movement under the Protocol on Inland Water Transit & Trade between the two countries in the past four years.
The convenience and cost-effectiveness of waterways had previously led many businesses to prefer this mode of transportation for their imports from India. However, due to negative growth in the cement industry and a slowdown in construction projects, the demand for raw materials like fly ash and iron ore declined. The shortage of dollars in banks also contributed to the decline in imports, as businesses faced difficulties in opening letters of credit. The drop in voyages negatively impacted shipping businesses, with local vessels carrying 92 percent of total goods under the Indo-Bangla protocol routes.
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