News / Air rates soar as Bangladesh garment exporters switch from ocean

© Tanvir Shovon

Airfreight rates in Bangladesh almost doubled over the past month, thanks to a significant rise in volumes and a capacity crunch

Stakeholders said with the market from Dhaka now reliant on belly capacity Bangladesh-Europe rates are hitting $3.50 per kg, up from $2 in December, with exporters being charged $4.50/kg to the US, up from $3 in December.

Freight forwarders have attributed the rising demand to the end of season, pressure on transit points linked to the Chinese New Year holiday and the Red Sea crisis causing shipping delays of at least two weeks.

Data shows that in December, some 10,410 tonnes of cargo was airlifted through Dhaka Airport, which increased to 14,451 tonnes in January. Most of these shipments were destined for the US, Europe, Turkey and Egypt.

Dhaka-based garment maker Tusuka that opted to airlift some 386,000 garments to the US and EU in January in order to hit markets on time.

 Nasir Ahmed Khan, director of the Bangladesh Freight Forwarders Association, told The Loadstar that due to the extended ocean transit times, buyers were preferring to get season-end goods out as quickly as possible.

“The rise in demand has also pushed freight rates from Dhaka to elsewhere,” he added.

Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association, said buyers now needed to wait an additional two to three weeks to get their products in hand, as ships needed to travel an extra 3,500 km to avoid the Red Sea.

“Thus, many exporters are forced to send cargo by air to meet deadlines,” he added.