Freight Congestion in Bangladesh Expected to Worsen Before It Improves

Dear customers,

Axxess would like to inform you about the Freight Congestion in Bangladesh according to CIFFA’s article published the 25th of April 2017.

As per message below:

Bangladesh, a global hub for the textile trade, has been suffering from serious air and ocean freight congestion, with leading forwarders expecting things to get worse before they improve.
Forwarders have told Lloyd’s Loading List that importers of garments and textiles from Bangladesh continue to be thwarted by port and airport congestion that is driving up supply chain costs. Bangladesh saw export earnings rise 4% to US$25.94 billion in the July-March period of the current fiscal year, supported by 10% year-on-year export growth in March that was largely attributed to shipments of apparel, a major component of the country’s economic health.
But transport capacity has not kept pace with the growth of the sector. Forwarders noted a major surge in demand in March from Bangladesh saw air freight rates soar. “We’ve seen a high single digit increase in rates and pre-booking times are now pushing a week,” one source said last week.
Another source said local authorities are desperately pushing forward with a number of new projects that will boost capacity in the coming years.

If you have any questions concerning this situation, please contact the Axxess International Freight Department.

Sincerely,

Benoit Lacelle

International Transports Director

Benoit.lacelle@axxessintl.com

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