Following Singapore-based PIL’s debut, Maersk Line will begin direct shipping services between China and Bangladesh from Shanghai. On September 9, Pacific International Lines (PIL) opened a new avenue for trade between China and Singapore by launching its first ship on the China-Singapore-Chittagong route.
The Denmark-based Maersk Line, equipped with more than 600 vessels, will engage its four vessels in the new route. Presently, its four vessels are plying the Chittagong-Singapore route under MCC, a feeder service wing of the company.
However, the other shipping lines that have been doing business through transshipments in Singapore and Colombo are also observing the new developments in the trades. The direct shipping operations will cut freight for Bangladeshi traders who import US$7.0 billion merchandise from China and help boost export opportunities for local manufacturers seeking new avenues for shipment, experts said.
PIL started the “landmark” shipping operations on September 9 when its vessel, Kota Wista, made the first voyage for Chittagong from Shanghai. Shipping circles said the new move will save a week for local traders who import most of the country’s electronics from China and garment makers who source yarn and fabrics.
Vessels carrying goods destined for Bangladesh first disembark in Singapore, Port Klang of Malaysia and Colombo before heading to Chittagong or Mongla. Similarly, cargoes loaded with Bangladeshi exports have to be reloaded in mainline vessels in the three major ports before being shipped to the EU, the US and other top markets.
Shipping executives said this process is cumbersome and adds extra cost to Bangladeshi merchandise. The shipment is delayed for weeks when feeder vessels are in short supply in the three transshipment ports. In many cases, goods and food grains remain stockpiled at the ports for weeks, fuelling inflation at home and spiking freight costs for export cargoes. Traders and manufacturers now need at least 22-25 days to import goods from China. PIL’s country head, Mr Rafiqul Islam, said Maersk’s move will ensure competitiveness in the route.
China has in recent years emerged as the country’s largest import partner. It accounted for some 21 per cent of Bangladesh’s $ 33 billion import trade in the financial year ending in June 2011. Bangladesh’s major imports from China include electronics, fabrics, non-cotton yarn and accessories, machinery, chemicals, intermediary raw materials, fertilisers, food grains and fruits. With its economy booming at a breakneck speed, the world’s most populous country has also grown to Asia’s top shopper.
Last year it bought $ 400 million worth of merchandise from Bangladesh. China last year overtook India as the biggest buyer of Bangladeshi raw jute and jute yarn. China also imports leather, dehydrated sea fish and apparel from Bangladesh.
