Apparel buyers revive alternatives in India amid Bangladesh struggles
India’s textile/apparel export hub of Tirupur, near Chennai, in Tamil Nadu state, is bouncing back ...
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FDX: ABOUT USPS PRIVATISATIONFDX: CCO VIEWFDX: LOWER GUIDANCE FDX: DISRUPTING AIR FREIGHTFDX: FOCUS ON KEY VERTICALFDX: LTL OUTLOOKGXO: NEW LOW LINE: NEW LOW FDX: INDUSTRIAL WOESFDX: HEALTH CHECKFDX: TRADING UPDATEWMT: GREEN WOESFDX: FREIGHT BREAK-UPFDX: WAITING FOR THE SPINHON: BREAK-UP ALLUREDSV: BREACHING SUPPORTVW: BOLT-ON DEALAMZN: TOP PICK
Air freight costs for shipments to Europe out of Bangladesh, Chad and Kuwait rose yesterday, after they joined a list of “high-risk countries” (RED) under new security regulations.
The changes, which came into effect on 1 June, could also mean less freighter capacity entering the countries, according to forwarders, as well as delayed transit times.
One forwarder in Bangladesh noted: “There will be new security measures shortly, implemented by all airlines. Their capacity will reduce due to re-screening methods at transit points, and re-screening charges will be added to freight, with long transit delays for shipments moving to the EU.”
Another freight forwarder told The Loadstar: “Airlines may pull down some freighter capacity, as the infrastructure may not cope with the additional air freight security processes.”
The regulations, which require the additional screening of shipments, will lead to extra transit times of two to three days.
IAG Cargo has already issued a note to customers, adding a AED0.4 ($0.10) security charge per kg.
While the export markets from Chad and Kuwait into the EU are not significant, Bangladesh is a different matter. The EU is Bangladesh’s main trading partner, accounting for some 24% of its total trade in 2015 and absorbing 47% of its exports.
But while the measures will increase time and cost, the forwarder said otherwise there would be “no major effect”.
“This additional security measure has been mooted for several weeks, so it’s no surprise. There will probably be no major effect, providing facilities can cope with the extra operational processes,” he said.
Other countries deemed high-risk by the EU are Djibouti, Nigeria, Afghanistan, Mauritania, Pakistan, Lebanon, Libya, Iraq, Mali, Niger and Sudan.
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