Protests and clashes in Bangladesh cause air cargo delays and soaring rates.
Bangladesh’s air cargo market is grappling with severe delays and exorbitant rates following weeks of protests and violent clashes between police and demonstrators. The situation appears to be stabilising after Prime Minister Sheikh Hasina resigned and fled the country yesterday.
A freight forwarder described the scene at Dhaka airport as “challenging,” with a backlog of cargo and limited flight options. The government’s shutdown of the internet and installation of road blockades halted cargo movement for several days. Although operations resumed on July 25, exporters now face significant backlogs and increased costs.
Rates to European and US destinations have skyrocketed, with freight forwarders turning to alternative routes via Colombo, Singapore, Malé, and Dubai. The extended transit times and limited flight availability are exacerbating delays and raising costs.
Current airfreight rates to Europe are around $6 per kg and $8.50 per kg to the US, roughly three times the usual prices. The ongoing turmoil, including slow port activity in Chittagong, is further straining the supply chain, creating unprecedented challenges for the industry. An interim government is being established, but uncertainty persists.
