Bangladesh sea and air freight update 24/10/22

For the past two to three months, foreign buyers have been putting their orders on hold and deferring them. Some 30% of orders have been deferred during this period. Production in factories has also decreased by at least 30% due to a reduction in export orders. Many factories are now operating at 50% capacity.

Ocean freight and Chittagong Port

Import and export of containerised cargo through the country's premier seaport in Chattogram fell in the first quarter of the current fiscal year compared to that last year, indicating a slowdown in foreign trade resulting from global economic downtrends. Transport of imports and exports through the port also underwent a gradual downfall in the last three months till September.

• Vessel Berthing condition: There is no vessel at outer anchorage. Only 11 vessels are working at port from which 4 containers vessels have been sailed as of Sunday 23 October. Some vessels will report at outer anchorage based on port authority instruction.
• Port Yard / Terminal Updates: At present 34156 TEUs containers are laying in Port whereas capacity is 49018. The ratio of import discharge from vessel 3151 TEUs and delivered 1071 TEUs from port. The auction area is almost covered with 7441 TEUs.
• Weather condition: Maritime port of Chattogram has been advised to *hoist distant cautionary signal no. one (R) one.* The Well-Marked low over Andaman sea and adjoining Southeast Bay intensified into a "Depression" over East-central Bay and adjoining Southeast Bay and North Andaman sea.

Shipping agents are facing difficulties in submitting the registration number and import general manifest (IGM) against their vessels due to a glitch in the related server of the National Board of Revenue (NBR), leading to delays in import-export activities.

Bangladesh and India are now at the final stage of operationalization of the agreement to use Chattogram and Mongla ports for transit of goods to and from India. The agreement was signed between Bangladesh and India in 2018.

Air freight and Dhaka Airport

The air freight market demand remains slow and steady; this impact is largely driven by world unrest. Inflation continues to play a major role in global volume movements, reducing purchasing power. The Ukraine and Russia war situation is still worsening, and is continuing to impact market demand. BD RMG sectors are having less orders compared to the forecast due to inflation in EU market. 

Airspace demand remains stable and air freight rate levels are also stable. Deferred routings via secondary hubs are still providing cheaper rates. Overall Transit time is regular to both Europe and the US.

The scanner is functioning smoothly. There is no congestion, and all other operational activities are as normal in DAC airport this week.