Bangladesh apparel exporters face time-sensitive disruptions amid freight congestion and fare hikes

Bangladeshi apparel exporters are grappling with severe disruptions in their shipping processes, both by air and sea, due to recent events. The internet blackout and curfew have led to significant delays, increasing lead times for deliveries. Airfreight costs have surged dramatically, with rates now at $6 per kilogram to Europe and $7.50-$8 to the US, compared to $2 and $3 five months ago.

Dhaka airport is struggling with an overload of cargo, resulting in delays of up to seven days for exports and 15 days for imports. The congestion has been exacerbated by a shortage of cargo flights, and some goods are being stored outside the airport due to space constraints.

The situation has driven many exporters to use Indian airports instead, where airfreight costs are lower despite additional road transport requirements. The volume of Bangladeshi goods passing through Indian airports has jumped to about 14,000 tonnes by June, up from 150-200 tonnes previously.

To address these issues, two chartered flights from Dhaka are scheduled to start this month, and the third terminal at Dhaka airport is expected to open by June next year. These measures aim to alleviate the current congestion and support the apparel sector.

The unrest, marked by significant student-led protests and resulting in around 200 deaths, has further compounded the logistical challenges. With the internet and curfew restrictions still in place, exporters continue to face considerable obstacles in meeting their shipping deadlines.