The Potential of Air Cargo in Bangladesh’s Export Strategy

Bangladesh’s export sector, predominantly driven by the ready-made garments (RMG) industry, is at a pivotal juncture. As global markets demand faster delivery times and supply chain resilience, air cargo emerges as a strategic asset in enhancing Bangladesh’s export capabilities.

The Rising Significance of Air Cargo

In 2023, Bangladesh’s airports handled approximately 285,000 tonnes of air cargo, supporting the country’s total import and export volumes . This figure underscores the growing reliance on air freight to meet tight delivery schedules, especially for time-sensitive goods.IATA

The RMG sector, accounting for around 85% of Bangladesh’s total exports, heavily depends on efficient logistics to meet delivery deadlines in Europe, the US, and beyond . Air cargo offers the speed and reliability required to fulfill these commitments, making it an indispensable component of the export strategy.The Daily Star

Infrastructure Developments Bolstering Air Cargo

Recognizing the importance of air freight, Bangladesh is investing in expanding its air cargo capacity. The expansion is seen as critical for the country’s $40 billion garment export sector . Hazrat Shahjalal International Airport in Dhaka, handling about 96% of the total air freight, is undergoing significant upgrades to accommodate increasing cargo volumes .The Daily StarWikipedia+1WSJ+1

Additionally, the government’s decision to expedite the launch of new air cargo services aims to reduce reliance on foreign carriers and enhance self-reliance in moving exports via air .Yahoo

Challenges Facing the Air Cargo Sector

Despite the promising developments, several challenges hinder the optimal utilization of air cargo in Bangladesh:

• Equipment Shortages: Exporters face issues with explosive detection machines, fluctuating air freight prices, and shortages in essential equipment such as pallets, containers, and crates .The Financial Express+2New Age Daily+2The Loadstar+2

• Operational Disruptions: Air cargo flows through Bangladesh’s Dhaka Airport have faced severe challenges due to the malfunction of explosive-detection scanners (EDSs), leading to delays and congestion .The Loadstar

• External Dependencies: Bangladesh exported roughly 3,400 tonnes of garments by air per week, with 600 tonnes flown through Indian airports before the transshipment ban, according to data from the Bangladesh Freight Forwarders Association . The recent termination of this facility by India has led to increased air freight rates and logistical complications .Asia News Network – Bringing Asia CloserB2B Marketplace+1B2B Marketplace+1

Strategic Recommendations

To harness the full potential of air cargo in its export strategy, Bangladesh should consider the following measures:

1. Infrastructure Enhancement: Accelerate the expansion and modernization of airport facilities, including the addition of state-of-the-art cargo terminals and handling equipment.

2. Policy Reforms: Implement policies that encourage investment in the air cargo sector, streamline customs procedures, and reduce bureaucratic hurdles.

3. Public-Private Partnerships: Foster collaborations between the government and private sector stakeholders to develop efficient and sustainable air cargo solutions.

4. Diversification of Export Routes: Explore alternative air cargo routes and partnerships to reduce dependency on neighboring countries’ infrastructure.

5. Capacity Building: Invest in training programs to develop a skilled workforce capable of managing advanced air cargo operations.

Conclusion

Air cargo holds immense potential in propelling Bangladesh’s export sector to new heights. By addressing existing challenges and strategically investing in infrastructure and policy reforms, Bangladesh can position itself as a formidable player in the global air freight arena.

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