Normal trade-shipment disruptions due to the Middle East turmoil have sent airfreight rates flying in Bangladesh, tripling for Dhaka-to-Europe transportation and nearly doubling for US reach.
Stakeholders say this has happened as hundreds of Middle East-bound flights had been cancelled since war broke out on February 28 between US-Israel duo and Iran, leading to severe capacity crunch against rising demand for rerouting trade cargos.
They say ships are now not carrying cargo towards the Middle East, which is created cargo stockpile on factory premises and off-docks. Moreover, flights from Dhaka touching the Middle-Eastern hubs are now being cancelled repeatedly, causing the capacity shortage that created scope for airliners to raise freight rates.
According to freight forwarders, just before the war broke out, the airlines from Bangladesh to various European destinations were charging around $2.0 to carry a kilogram of cargo, and now they are charging up to $6.0 per kg to cash in on the crisis-time demand hike against capacity constraints.
The airlines are now charging up to $7.0 a kg to carry cargo towards the United States, up from $4.5 two weeks back.
Nurul Amin, a former vice president of Bangladesh Freight Forwarders Association (BAFFA), says the war-linked disruptions have led to freight-rate spiral for trips from Dhaka to any destinations abroad.
According to him, usually some 60 per cent of Bangladeshi air cargos are sent abroad by using the Middle-Eastern hubs.
"Since the flights towards Middle East are now almost halted, the airlines which go to the US and Europe avoiding the gulf countries have raised the freights," says Mr Amin about wartime trade tribulations.
He has said some 56 per cent of air cargoes from Bangladesh go to Europe while 22 per cent go to the US.
Major carriers Emirates, Flydubai, Air Arabia, Qatar Airways, Gulf Air, Kuwait Airways, and Saudia Airlines are based in the Middle East. Majority of Bangladeshi air cargoes are being carried by these airliners while Biman Bangladesh airlines carry a portion of them.
There is no direct flight from Dhaka to US and European destinations save one or two flights operated to the United Kingdom by the Bangladeshi flag-carrier. "So the demand has increased and thus the airlines which don't touch Middle-Eastern hubs are taking high charges," he says, adding: "The matter is of demand-and-supply capacity."
Nasir Ahmed Khan, a former BFFA director, has said several hundred flights have been cancelled, causing the capacity crunch to carry air cargoes.
"Air-freight rates have increased for almost all destinations," he told The Financial Express.
Inamul Haq Khan, Senior Vice President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Financial Express Friday that both the passenger-and cargo-flight charges have gone up significantly since the war broke out and turned Mideast airspaces no-fly zones.
He said in most cases, exporters make air shipment at their own cost. They only make air shipment in case of emergency to keep cargo outflow intact.
"But when the freight rates become double or triple, it goes totally beyond the capacity of exporters," said Mr Khan, also Managing Director of Ananta Garments Ltd.
syful-islam@outlook.com
