Bangladesh opens door to private air cargo operators in logistics push
In a move designed to tackle chronic congestion and delays in airfreight exports, Bangladesh will ...
By Alex Lennane
Interest in charters and freighters is high from the sub-continent, where demand is “surging” according to a forwarder.
Freighter space is fully booked, with rates on the up, according to Chennai-based Ligi Logistics.
“There is a strong uptake in charters,” it said. “Rate levels are up by 10% to 15% week over week in key tradelanes.”
The forwarder noted that demand was high particularly from Mumbai, Delhi, Chennai, Dhaka, Colombo, and Karachi to the US and Europe.
“Routes from Dhaka, Karachi, Colombo, Mumbai, and Delhi to JFK/ORD/LAX are experiencing backlogs, due to high ecommerce and retail demand,” he added – Dhaka in particular had seen a “major hike”.
According to Freightos Terminal, rates from India to the US west coast have jumped in the past week, after another peak a month ago. To Chicago, rates have been on the rise since mid-June (see charts, India-Chicago and similar routes).
Freightos Terminal, Delhi to Chicago and similar routes, 2024 vs 2025
Freightos Terminal. Spot rates Delhi to Chicago and similar
Rotate’s capacity database does not filter out widebody passenger flights from the subcontinent to the US, but last month, compared with the average previous four months, widebody capacity was down 32% – but last week it was up 15%.
India and the US are still trying to negotiate a trade deal, which reportedly faces challenges over US access to the Indian agricultural market, which may not be able to cope with US imports. But any trade deal – with India hoping to get the general tariff level at below 20% – is not expected to cover pharmaceuticals, an area where the US is keen to place high tariffs. Last week, President Donald Trump said pharma tariffs could be up to 200%, and in place in a year to 18 months.
If that is the case, then pharma shippers may not be scrambling to export pharma urgently – but inconsistent US policies might result in a wave of pre-tariff demand. The US accounts for more than one-third of Indian pharma exports, up nearly 15% in FY2025.
Ligi said the main exports from the subcontinent right now were fashion, pharma and electronics.
But the forwarder said that demand to Europe was also high.
“Space is constrained, with Amsterdam, Frankfurt, and Paris being the most impacted. The average rate is $4.5–$6/kg, depending on urgency and destination. Pharmaceutical traffic is picking up, adding to capacity pressure.”
According to Rotate, freighter capacity from the sub-continent to Europe last month rose 10% over the average of the previous four months, while last week it was up 1%. According to Freightos, pricing on the route has also crept up since May, but is similar at this point to last year’s levels.
Meanwhile, Middle East congestion, which hit after airspace was closed owing to the Israel-Iran skirmish, has eased, with routes “more stable”, said Ligi.
“There is regular uplift on narrowbody aircraft via Dubai (DXB), Doha (DOH), and Abu Dhabi (AUH). Rates are holding at $2.5–$3/kg, with slight fluctuations from South India.
“Capacity remains limited, with major dependency on Middle East carriers via hubs. Backlogs for Nigeria, Kenya, and South Africa are causing extended lead times.”
Ligi added that to Oceania from India, “space is extremely limited, with high dependency on transshipment via Bangkok (BKK), Singapore (SIN), and Kuala Lumpur (KUL)”.
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