Air shipment of readymade garments and other exportable has sharply increased in recent times as businesses turned to this costly alternative for the non-stop countrywide transport blockade and frequent hartals, insiders said.
They said the exporters now opted for air shipment to meet tight delivery deadlines, although the export cost by air is 13 times higher than that of sea freight.
According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data, the cost of exporting goods by ocean vessels is only 30-32 US cents per kg, but the rate runs as high as $4 per kg in case of airfreight.
The data also showed that the apparel sector counted Tk 500 million more in last 34 days due to the countrywide blockade and hartals called by the BNP and its allies over political problems with the government.
After visiting Hazrat Shahjalal International Airport (HSIA), this correspondent found the storehouse at the airport overflowing with cartons with many things lying outside which are waiting for air shipment to several global destinations.
"It is very difficult for us to send the exportable items, including RMG and other products, to the Chittagong port by road due to the ongoing countrywide blockade and hartals," BGMEA Vice-President Shahidullah Azim told the FE.
Now the exporters have no alternative to air shipment due to political turmoil, he said, adding that apparel-makers are turning their attention to air freight as they cannot ship their goods on time.
In a bid to maintain timely shipment, Mr Shahidullah said, local entrepreneurs are bound to send products by air otherwise international business partners will cancel orders.
He said air-shipment cost is more than 13 times higher compared to that of sea freight. But exporters prefer it to meet the deadlines set by buyers, he added.
Mahbubul Anam, president of Bangladesh Freight Forwarders Association (BAFFA), said because of the countrywide blockade, exporters are facing a shortage of transport on highways. So, a large number of exporters are asking them for air shipment of RMG and other goods.
As exporters are very serious to meet tight timelines, he said, they have given attention to airfreight in an attempt to boost their business.
Abdus Salam Murshedy, president of the Exporters' Association of Bangladesh, said their shipment had been reduced by nearly 70 per cent in last 34 days.
"Air shipment is expensive. So, the exporters have to cover the loss from own funds."
Mr Murshedy, also Managing Director of Envoy Group, said due to political unrest in recent times, international business partners like Germany, the United States, Canada and Spain cancelled their visit to Dhaka.
Political instability is also taking its toll on the process of searching new export destinations, he said. "If the present political instability lingers on, it will not be possible to achieve the export target for RMG products and other goods this fiscal year."
A Biman Bangladesh Airlines official said in the last 34 days, more than 20,000 tonnes of goods had been shipped by air--a 40 per cent rise in recent times.
Some 25-30 scheduled passenger flights and air freighters were carrying exportable products every day, he added.
shahalamnur@gmail.com
Exporters now turn to expensive air shipment
Shah Alam Nur | Published: February 10, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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