Bangladesh's air freight rates up after India ends transshipment

The airport in Dhaka has limited capacity for handling export-import cargo. The two other international airports, Osmani International Airport in Sylhet and Shah Amanat International Airport in Chattogram, handled negligible volumes due to limited international flights and lower cargo demand.

CAAB plans to open the Sylhet airport for cargo operations on April 27 and Chattogram will follow. The first flight will depart from Sylhet for Spain at 7 pm with about 70 tonnes of garments.

Dhaka's spot air cargo rate to Europe has surged to $6.30-$6.50 per kg, surpassing all earlier records, including those during the pandemic. Such rates to the United States are around $7.50-$8.00 per kg—up from $6.91 in August 2024.

Such costs stand at just $4/kg out of Kolkata and $3.50/kg from the Maldives.

Close to 18 per cent, or around 600 tonnes, of Bangladesh's weekly air cargo was routed through Indian airports.

Exporters also face additional charges in Dhaka, including Tk 2.5 per kg for ground handling, Tk 2 per kg for scanning and Tk 0.25 per kg per day for warehouse storage.

Exporters are worried as they are receiving notices from airlines indicating higher rates in the next week, citing growing demand and shrinking cargo space.

Without urgent intervention, freight costs could double, domestic media outlets reported citing industry insiders.

The Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) said the country’s airport charges are among the highest in the region, and jet fuel prices outpace global averages—factors that add to the spiraling costs.

Capacity constraints at airports remain unresolved as well.

Fibre2Fashion News Desk (DS)