Bangladeshi garment shippers experiencing delays must pay more as they resort to using air freight

DHAKA : Due to curfews that impeded maritime transport, Bangladeshi garment manufacturers are forced to use expensive airfreight to meet rising consumer demand. However, buyers are unwilling to absorb the increased expenses.

Furthermore, sources claim that even clients who are open to using airfreight are asking for 15%–20% price reductions.

The government-imposed curfew and internet restrictions that followed widespread student protests across the nation last month have severely impacted the majority of transportation services.

Approximately 3,000 tonnes of cargo by air were unable to be sent. The vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Arshad Jamal Dipu, stated he had to transport 80,000 pieces from port depots in Chittagong back to Dhaka.

“My company, Tusuka Group, spent about Tk320 million to send goods by aircraft until this Sunday after failing to send them by ship in time,” stated Mr. Dipu, the chairman of the company.

MD of Sparrow Group of Industries Shovon Islam stated that he had also been concerned over unsuccessful shipments in the previous week, stating that “the buyers requested an extension for 40% of the goods, but they are still asking to send the remaining 60% by air.”

In a meeting with international garment purchasers on Monday, the BGMEA demanded that there be no “system-generated” discounts for delayed shipments, as this would lower their profits.

According to exporters, if shipments are delayed by 15 days or more, the systems of large purchasers automatically calculate a discount ranging from 5% to 10%.