Setback in air shipment feared as 2 Dhaka airport scanners inoperative

Infograph: TBS

Freight forwarders fear exports through air cargo could stumble as two of the four explosive detection scanners at Hazrat Shahjalal International Airport, Dhaka, are currently inoperative amid rising export volumes. 

Problems in air cargo handling will lead to exports through airports in neighbouring countries, ultimately causing a dent in both government revenue and freight forwarding business, they say.

One scanner machine has been out of operation for more than a year, and another for at least six months, according to them.

They reported that only one of the existing four scanners was operational at the airport just before Eid-ul-Fitr.

At the time, Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, wrote a letter to the Civil Aviation Authority that it was utterly impossible to meet their cargo handling demands with only one functioning scanner.

While cargo pressure has diminished during the Eid vacation, exporters are worried about the upcoming months as air cargo demand is gradually rising following the trend of the previous months of this year.

Nasir Ahmed Khan, director of the Bangladesh Freight Forwarders Association, told TBS, "Until last week, three of the four scanners were out of order. One was operational for only 12 hours a day. Consequently, we faced significant setbacks."

Highlighting the fact that only two scanners are currently operational, he said, "With two machines, we can manage our operations adequately. But our business volume is steadily increasing day by day. Therefore, it will not be enough to meet our requirements in future.

"If we cannot ensure proper service now, neighbouring countries will take advantage of it."

He said, "Many buyers prefer their cargoes delivered through Kolkata and Mumbai for this reason. Now, if we cannot ensure the service at Dhaka airport, we fear that most of the cargoes will go abroad via India. In that case, the government will lose revenue, and we will lose business."

Kamrul Islam, executive director of Dhaka airport, said, "Currently, two scanners are operational. One is unserviceable, and another one is in the process of being replaced.

"There have been maintenance issues, but no cargo delivery has been halted due to problems with explosive detection scanners."

Dhaka airport has frequently faced challenges with its scanning machines, causing inconvenience for freight forwarders as repairs often take months.

The airport faced similar problems in September 2020, September 2021, and March 2022.

Rising demand for air cargoes

According to the Bangladesh Freight Forwarders Association, Dhaka airport's daily cargo handling has surged to an average of 600 tonnes of goods, a significant increase from the 150 to 250 tonnes recorded three months ago.

The association's director, Nasir Ahmed Khan, said air exports through Dhaka have increased several fold in recent months, freight rates have doubled, and in some cases, even tripled, to the main destinations for Bangladeshi garment exports.

However, malfunctions of EDSs seriously disrupt shipments, said Nasir, adding that there are also shortages of other equipment, including the crates that carry boxes to aircraft.

"When EDSs do not work, we depend on explosive-detection dogs, which cannot conduct security checks fast," he said.

Kabir Ahmed, president of the Freight Forwarders' Association, said the country's demand for air cargo is 1,000-1,200 tonnes per day, but the current capacity falls short, reaching less than half of this requirement.

He said once Dhaka airport's third terminal is opened, it will significantly boost its cargo handling capacity.

Siddiqur Rahman, former president of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said around 90% of air cargo users in Bangladesh are apparel exporters. He added that a small amount of vegetables are also exported by air.

Spot rates up

Air freight spot rates out of Bangladesh to Europe were up 29%, month on month, in mid-March, reports The Loadstar, quoting Ocean and Air Freight Rate Analytics Platform Xeneta, with strong demand for apparel. Rates to the US were up 10%.

According to Xeneta, "Looking at the general cargo market at a country level, India, Bangladesh and Sri Lanka experienced significant increases in their general cargo spot rates, which rose by a considerable 81%, 40% and 55% respectively, in the week ending 3 March, compared with four weeks earlier, driven by strong demand for apparel products from these markets."

Rates have also risen in the region owing to the container shipping disruption in the Red Sea.

In December, some 10,410 tonnes of cargo went through Dhaka Airport, which increased to 14,451 tonnes in January (+39%), some 18,700 tonnes in February (+29%), and 19,127 tonnes in March (+2%).