News / Cargo logjam at Dhaka Airport as clearing and forwarding agents strike

© Awargula

Over 1,500 tonnes of export-import cargo is waiting at Dhaka Airport, following a three-day strike by clearing and forwarding (C&F) agents protesting against the introduction of an express delivery system.

The customs authority introduced a new rule on 6 June allowing courier services to assess cargo weighing below 30kg themselves, which helped importers receive cargo within two days – which also allowed for faster exports – but meant C&F agents lost business.

Shipments handled by C&F agents are slower; importers must wait around a week for their cargo, resulting in factories being forced to delay production.

The C&F agents temporarily suspended the strike on Tuesday, but warned they would strike again next Monday unless a memorandum of understanding facilitating their business is signed by Sunday.

Boxes have piled up at Hazrat Shahjalal International Airport (HSIA), exacerbated by a government holiday following the strike, meaning cargo was not delivered for four days.

Stakeholders say it will take at least a week to clear the backlog.

Faruque Alam, general secretary of the Dhaka Customs Agents Association, told The Loadstar members of his organisation had partially resumed work on Thursday. However, he added, processing express delivery cargo remained suspended until an MoU is signed.

“We have a meeting with the customs authority on Sunday to resolve the disputes.”

Arshad Jamal (Dipu), VP of the Bangladesh Garment Manufacturers and Exporters Association The Loadstar the majority of garment accessories arrived in Bangladesh by air, adding: “This is a peak season for sweater production. The delivery suspension at Dhaka Airport has a huge impact.”

And Nasir Ahmed Khan, VP of the Bangladesh Freight Forwarders Association added that due to the strike, many factories had kept export cargo in their warehouses instead of sending them to the airport.

“The present export cargo capacity at Dhaka is lower than the demand. The backlog will further deepen the space shortage,” he said. “Immediate deployment of freighters could help lessen the cargo backlog.”

Mr Khan added that the strike was also harming the country’s reputation.