Ctg-Italy direct shipping to slash cost by 40pc

A new container shipping service directly connecting the Chattogram port to one in Italy will reduce costs by almost 40 per cent, opening a new horizon for Bangladesh's foreign trade, said BGMEA President Faruque Hassan yesterday.

Goods will be able to reach Europe in just 16 days whereas it, currently, takes 40 days to 45 days or more for the use of transhipment ports, he said.

Hassan was addressing a view-exchange meeting between delegates of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and officials of the Chittagong Port Authority (CPA) on the latter's premises marking the service's launch.

Kalypso Compagnia di Navigazione SPA, Italy, has employed two chartered vessels, Cape Flores and Songa Cheetah, each of 1,200 TEUs capacity, on the route. The CPA has initially granted permission for six months.

On a second trial voyage, MV Songa Cheetah arrived at the Chattogram port on Saturday carrying 945 TEUs (twenty-foot equivalent units) of empty containers and seven TEUs of import containers.

It may leave today with 1,100 TEUs of export-laden containers, containing mostly garments.

"More shipping lines from Europe and even transatlantic ones will join…because this will add significant economic values to the economies," said the BGMEA president while briefing journalists.

This is happening amidst global trade and supply chains left crippled by the pandemic, he said.

There was no vessel congestion at the Chattogram port during the pandemic while many global ports experienced seven to 45 days of congestion, he added.

In spite of a global container shortage and increased freight costs, Bangladesh exported $35.81 billion worth of apparel in 2021, the highest ever in a single year, said Hassan.

It was $4 billion in December 2021 alone and even higher in January. "This makes us more confident, and concerned too about the capacity needed to handle the rise in trade," he said.

He thanked the CPA chairman for giving a berth to Songa Cheetah right upon arrival.

Terming the service "just a beginning", European Union Ambassador Charles Stuart Whiteley hoped for the Chattogram port to expand its capacity in the coming years.

The direct service will surely cut shipping costs, which will help all parties involved, said Italian Ambassador to Bangladesh Enrico Nunziata.