After more than a decade away from container feeder services, Bangladesh Shipping Corporation (BSC) is charting a bold return to the container market. With Planning Commission approval in hand, the state-run carrier is poised to invest $359 million in six new vessels—each boasting a capacity between 2,500 and 3,000 TEU. Scheduled for delivery in 2027 and 2028, these ships promise to re-energize a market that once saw BSC as a pioneer in the container feeder space.
Back in 1993, BSC launched its first container feeder service on the Chattogram-Singapore route, operating a box ship alongside two multipurpose vessels. Although those services were discontinued over ten years ago, the current project aims not only to revive BSC’s container operations but also to provide vital local feeder services linking Chattogram with key regional hubs such as Singapore, Port Klang, and Tanjung Pelepas in Malaysia. This strategic move is expected to reduce foreign currency losses incurred by local exporters, potentially saving them more than $6.5 million each year, according to BSC’s Managing Director, Commodore Mahmudul Malek.
An innovative financial arrangement is driving the revival project. A concept paper signed between BSC and Korea’s Economic Development Cooperation Fund (EDCF) sets the stage for a comprehensive feasibility study. Under this agreement, South Korea’s export finance bank, EXIM, is expected to cover more than 90% of the project’s cost through a loan, with BSC contributing the balance. Orders for the new vessels are anticipated to be confirmed in the next two to three months, positioning the company to transport up to 600,000 TEU annually once the ships enter service.
This development couldn’t have come at a more interesting time for the shipping industry. Global container freight rates have recently experienced significant turbulence. Drewry’s World Container Index (WCI) reported a notable 10% drop within a week, while the Shanghai Containerized Freight Index (SCFI) also recorded a sharp decline. These falling rates are largely attributed to geopolitical shifts—most notably, a ceasefire that led to the Houthi halting attacks on international shipping in the Red Sea. Although major container lines have maintained their routes via the Cape of Good Hope and other key passages, the market is bracing for a new era of supply-demand challenges.
Industry analysts have cautioned that the resolution of the geopolitical crisis in the Red Sea, coupled with the influx of diverted capacity and a surge of newbuild vessels, could further upset the delicate balance. Last year alone, nearly 11% more capacity—amounting to around 3 million TEU—was added to global container trades, largely to compensate for route diversions. With another 200 new builds set to be delivered this year, adding an estimated 2 million TEU capacity, the shipping market could see rates falling as quickly as they had previously spiked.
For Bangladesh, this re-entry into container shipping is more than just a revival—it’s a strategic leap forward. Currently, about 80 feeder ships operate out of Chattogram Port, yet only eight of these vessels, with an aggregated capacity of 11,840 TEU, are managed by local companies like HR Lines Limited. BSC’s new fleet not only underscores a commitment to modernizing domestic shipping services but also promises to enhance the competitiveness of Bangladeshi exports on the international stage.
As the global shipping landscape evolves amid fluctuating freight rates and a growing fleet, BSC’s forthcoming container vessels represent a beacon of progress. The move is set to invigorate local trade routes and support the country’s economic growth, particularly for the burgeoning middle class and small-scale exporters who depend on cost-effective and reliable freight solutions.
In a market characterized by uncertainty and rapid change, BSC’s strategic re-entry offers a refreshing reminder of the enduring value of innovation and national resilience in the face of global challenges.
