Amid surging airfreight rates and congestion in traditional Middle East hubs, Bangladeshi freight forwarders have started rerouting air cargo to the US west coast via China. This strategic shift, driven by both cost considerations and logistical challenges, has become increasingly vital for Bangladeshi exporters to stay competitive.

Industry leaders, like Mahbubul Anam, Managing Director of Expo Freight, are recognizing the Chinese route as a cost-effective alternative to long-established pathways. “Switching to China saves approximately $1 per kilogram,” said Anam, underscoring how significant these savings can be for high-volume exporters. The move aligns with a market that is heavily reliant on spot purchases, with more than 70% of Bangladesh’s air cargo volume being secured in the spot market. This dependency has led to market volatility, with rates fluctuating frequently.

In addition to rising costs, poor infrastructure in Dhaka has presented operational hurdles. The city’s limited capacity for handling the growing demand for airfreight has pushed forwarders to explore not just Chinese routes but also new transit points in neighboring India. India has emerged as a reliable transshipment hub for cargo destined for the US and Europe. Many shipments are now being trucked to Delhi, where they are then flown onward, offering a seamless alternative to Dhaka’s constrained capacity.

The evolution of sea-air logistics is also becoming a preferred option. Bangladesh-origin goods are shipped by sea to China and then flown to final destinations in the US or Europe, providing a flexible and cost-effective solution for time-sensitive shipments. This combined route not only reduces reliance on air capacity but also mitigates the risk of delays at overcrowded air hubs.

This diversification comes at a time when capacity between Asia Pacific and North America has grown by 16%, while routes to Europe have seen a 19% increase this year. Last week alone, capacity to Europe grew by 21% year-on-year, and to North America by 13%, helping to alleviate some of the demand pressures.

Bangladeshi forwarders are adapting by embracing a blend of air and sea-air solutions, leveraging both new and existing routes to overcome challenges. As rates continue to shift and congestion persists, these innovative routes may offer a sustainable pathway for Bangladesh’s growing export industry to thrive.

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