Frequent hartals compel exporters to go for air shipment of RMG, other goods

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Shah Alam Nur | Published: November 17, 2013 00:00:00 | Updated: November 30, 2024 06:01:00

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Air shipment of readymade garments and other goods increased significantly in recent times due to the frequent countrywide shutdown as a sequel to the restive political situation in the country causing hike in export cost.
To avoid the chaos and vandalism in the roads, exporters' dependence on air route has been increasing which is taking a toll on export cost.   
Air shipments cost is 13 times more than the sea way but exporters typically turn to the costlier air shipment for maintaining their shipment deadline.
It is now tough to reach the Chittagong port by roads as uncertainty looms large over transportation due to political programme like Hartal, industry insiders said.   
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam told the FE on Saturday:  "Such shutdowns came as a big blow for export business as we could not maintain smooth shipment".
He said due to political turmoil this month most of RMG makers could not make timely shipment of their goods so they are going for air shipment.
Mr Atiqul said for maintaining the fixed time of buyers, RMG makers are forced for air shipment otherwise the exporters will face order cancellations.
He informed that it costs 30 cents for per kg if carried by ocean vessel but the rate goes as high as $4 per kg in case of airfreight.
Ismail Bhuiyan, sales manger of Emirates Airlines told the FE that in recent times their air cargo business marked a significant rise due to hartal.
He said due to frequent countrywide shutdowns since January many of air cargo companies increased flights of their cargo planes.
Amiya Shankar Barman, Director Administration of Bangladesh Freight Forwarders Association (BAFFA) told the FE that after countrywide hartal many exporters are coming to them for air shipment of RMG and other goods resulting in rise in their business significantly.
He said exporters of RMG and other gods are very serious to meet deadlines so they have turned to air shipment.
Readymade garment sector counted additional Tk 40 billion in expenditure in last one year due to strikes and shutdown called by political parties and their allies, the BGMEA official said.
Managing Director of Giant Group Faruque Hassan said their shipments have fallen by nearly 70 per cent in November compared to April and May this year.
He said as the exporters are compelled to go for air shipment they incur a huge loss rather than earning profit.
Mr Hassan said in the last couple of months a big number of foreign buyers like Germany, the United States, Canada, and Spain had cancelled their visits to Dhaka due to political turmoil.
He said this political instability is also taking a toll on the process of exploring new export destinations.
If the political parties don't resolve the problem, export target of RMG and other goods will not be fulfilled, Mr Faruque said.
Managing Director of Nassa Group Khandakar Mohammed Saiful Islam told the FE that many international RMG buyers have been losing their confidence in Bangladesh due to continuous shutdowns and political turmoil.
He said now it's the peak time to get new orders but the exporters are facing the shortage of export orders.