-Cargo fare hikes four times in a month
- reduced the allocation of space (cargo space)
‘Export may decrease by two-thirds. There is a fear of losing foreign currency and customers’
Mohammad Mansur, General Secretary, BFVAPEA
Biman Bangladesh Airlines has increased the cargo fare four times in a month and reduced the allocation of space (cargo space) in the aircraft. At the same time, they are claiming that the cargo space for vegetables has also been reduced on the pretext of taking up more space. As a result, exporters fear a negative impact on exports.
Exporters said if the demand cannot be exported due to additional costs and lack of airspace, buyers may turn away from Bangladeshi vegetables and fruits. In this situation, the Bangladesh Fruits, Vegetables & Allied Products Exporters' Association (BFVAPEA) approached the Ministry of Agriculture.
According to media reports, BFVAPEA sent a letter to the Ministry of Agriculture on February 22. A month after this, on March 25, the Ministry of Agriculture attached the said letter and wrote to the Ministry of Aviation to take necessary action. Later, the Ministry of Aviation wrote a separate letter to the Chairman of the Civil Aviation Authority of Bangladesh (CAAB) on April 29, attaching the letter of the exporting organization and the Ministry of Agriculture. The letter directed to provide feedback on the expansion of the airport cargo loading area and adequate space for cargo loading.
In the letter signed by Mohammad Mansur, General Secretary of BFVAPEA, it was said that the exporting companies included in the organization have been exporting agricultural products to different countries of the world through Biman Bangladesh Airlines, including London, Manchester, Toronto, Saudi Arabia, UAE, Oman, Qatar, Kuwait, Singapore, and Malaysia. It has been making a significant contribution to the national economy by earning foreign exchange by increasing the revenue of aircraft by exporting it by air. But, Biman's cargo authority has charged $0.70 (Tk77) per kg product for 4 times in three weeks only on Dhaka-London and Dhaka-Manchester and Dhaka-Jeddah routes, $0.30 (Tk 33) per kg product for 3 times in one week only on Dhaka-Toronto route ) increased transport fare by $0.10 (Tk11) on the Dhaka-Jeddah route.
Complaints of exporters on cargo space are that Biman does not allocate space as per the demand of agricultural exporters even though agricultural products are more profitable due to higher container capacity compared to RMG and other dry cargoes. They send dry cargo with RMG. Also, as agricultural products are perishable products, there is no alternative way of quick export except by air.
Mohammad Mansur said, there is no precedent for increasing perishable goods transportation fares in airlines of any country in such a short period. It has also increased in other countries including neighboring India. But the rate at which we have been raised here is disproportionate. It used to cost $1.5, now it has increased to about $4. It has become difficult to bear this additional cost. As a result, cargo bookings have also decreased. As a result, the export of these products may decrease by two-thirds. There is a fear of losing foreign currency and customers. Our major competitors are India, Nepal, and Sri Lanka. On this occasion, foreign buyers are leaving us and moving to these countries.
He also said, even after sending the letter, we did not get any response. Mango and litchi season is ahead. We also have a large trade in the export of these two products. But exporters are worried as the hurdles in cargo fares and space com remain unsolved.
Mohammad Mohiuddin, GM (Cargo) of Bangladesh Airlines said that the increase in fares is correct, but I am not aware of the complaints about the space issue. However, if an exporting organization seeks assistance; full cooperation will be provided by Biman.
ZH
