Global freight forwarder and logistics services provider - Damco - has sought the Bangladesh Bank (BB)'s assistance in resolving payment difficulties centring its sea-air shipments.
The company has also requested the central bank to allow settlement of its overseas obligations in US dollar instead of Bangladesh Taka (BDT).
The issues were raised at a meeting with BB Governor Atiur Rahman at the central bank Thursday.
Danish Ambassador to Bangladesh Hanne Fugl Eskjæar led a six-member delegation at the meeting. The central bank governor was accompanied by Allah Malik Kazemi, change management advisor, Ahsan Ullah, executive director, and other BB officials.
In Bangladesh, Damco is represented by a locally incorporated, wholly foreign-owed subsidiary - APM Global Logistics (Bangladesh) Limited - since 1993.
Damco Bangladesh is providing logistics services to global retailers, including H&M, Walmart, Sears, JCPenney, Target and Macy's and importers, particularly of apparel sector.
"We're facing pressure in conducting our business in Bangladesh because of payment-related problems," a senior official of APM Global told the FE.
He also said in Bangladesh Damco is paid in BDT by the exporters for total sea-air shipments. But the air-freight leg has to be settled in the US currency in Dubai in line with the International Air Transport Association (IATA) rules and regulations.
The sea-air product is unique, as it has two separate transaction modes combined into one product solution.
Firstly, goods produced in Bangladesh for exports are consolidated in a warehouse in Chittagong and sent by container-ship to Dubai. The goods are then re-consolidated into air-pallets and airlifted to the final destination countries, particularly in Europe and North America.
Currently, Damco Bangladesh is not allowed to remit US dollar to settle the airfreight, and the exporters are not allowed to settle this directly, as the cargo leaves Bangladesh on an original bill of lading (OBL), the official explained.
At the meeting, the BB officials assured the delegation of examining the issue.
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