News / Freighter operators demand better service at Dhaka in return for capacity

Cargo airlines are demanding better services and lower costs in Bangladesh, if exporters want more airfreight capacity.

Elevated air freight rates out of the country have caused a number of airlines to add ad hoc services to the country, including Qatar Airways, Silk Way West and Emirates, which began offering Dhaka freighter services about two weeks ago and are keen to increase capacity amid high demand.

However, in a meeting yesterday with the Bangladesh Freight Forwarders Association (BAFFA), the airlines said they could provide more capacity – if problems with the airport scanners were resolved and adequate handling infrastructure was available.

They are also considering operating to Sylhet in a bid to relieve the pressure in Dhaka.

“We met representatives of almost all airline operators in the meeting,” Nasir Ahmed Khan, BAFFA VP, told The Loadstar. “The airlines are ready to raise capacity if the scanner and equipment problems are resolved.”

He explained: “With the current facilities in Dhaka Airport, freighters need to wait extra hours to get cargo on board, adding to their costs.”

The carriers had complained that not only was the airport equipment poor, but the costs of operating to Dhaka were high – in particular because of one-way traffic.

Imports to Bangladesh have fallen, owing to a scheme which means importers must open letters of credit (LCs) with a bank to buy foreign goods and guarantee payment in US dollars. But there is a dollar shortage, and LCs are hard to come by. As a result, export shippers must pay for the whole cost of the flight if they want capacity.

Airlines are also facing very high handling charges: they claim it costs between $20,000 and $25,000 to operate at Dhaka, whereas charges at Kolkata are between $900 and $2,000.

In a bid to find a solution, Mr Khan said carriers were looking at Sylhet Airport, some 250km from Dhaka, instead, and added: “We will work jointly to bring Sylhet Airport into operation for freighters. That will also lessen the pressure at Dhaka.”

Air freight rates from Dhaka to the US reportedly are now $9 per kg and to Europe $7 per kg.

Meanwhile, Dhaka Airport’s chronic scanner problems continue. Of its four explosive detection scanners, two have been out of service for some time, while one is being held back in case the other fails.