The first Bangladesh-flagged vessel under this treaty, MV Shamayel called at Paradip Port in Orissa, India on December 29, 2016, carrying 149 empty containers and sailed back with 91 containers loaded with sponge iron.
The vessel reached Chittagong, Bangladesh on January 1, 2017, thus completing the voyage under the Coastal Shipping Treaty between the two countries.
The scope of work undertaken by Seaways include inland haulage from ex-works, arranging for the vessel, stevedoring, vessel agency and last mile delivery from Chittagong Port to destination, the company said in a release issued here on Monday.
Traditionally, container cargo from India was shipped to Bangladeshi ports via Singapore or Colombo hub ports. This not only increased the time taken for the cargo to reach their destination, but also burdened the shippers with additional costs.
Under the Coastal Shipping Treaty, both Indian and Bangladeshi Governments will treat each other’s vessel as their own national vessels and allow for direct cargo movement between each other’s ports. Now, the transit time has reduced by more than two weeks and shippers will save on the additional charges that were being charged by the hub ports.