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Port efficiency must in reducing export lead time

Published : Tuesday, 19 October, 2021 at 12:00 AM  Count : 1146

Port efficiency must in reducing export lead time

Port efficiency must in reducing export lead time

Along with growing trade of Bangladesh, it is important for developments of transport systems and ports infrastructures to cope up with other growing economies in the region. To continue the existing economic growth it is imperative to offer the competitive facilities and advantages to the foreign investors as well as to the domestic entrepreneurs to remain in competition in lead time, shortest transport duration, legal infrastructures and the most important is to improve ports efficiency for both sea and airborne trades.

In parallel with enhancing export targets, there must also be to increase infrastructure development targets as the growing trades require logistical supports from port to factories and from factories to ports. But I feel unhappy when I see as per growth of trade and economic size, the infrastructure is inadequate and trade suffers different kinds of pressures in exporting goods and in importing also.

In the ongoing pandemic of coronavirus new problems are being added with existing ones as a result costs of doing business is rising and exports are becoming less competitive. As the world is becoming normal after recovering the pandemic caused slowdown, Bangladesh's export is getting its momentum gradually. In the recently held Euro Cup football matches 50 to 60 thousands if people watched matches in stadiums without wearing masks which shows braving the covid-19 economic activities in the European

So market is opening again after lockdown and shutdown and our importing countries have started keeping readymade garments products in their selves. Demands are rising and as per Bangladesh Export Promotion Bureau latest statistics our September exports this year have grown over 34 per cent in compare with same months last year. To cater this sudden rise of demands we are getting orders but not getting adequate ships for shipment as most of the ocean-going ships operators have lowered the numbers as they are not getting adequate cargoes in different ports of different countries.

As a result there is shortage for containers in ocean going ships for free on board (fob) shipment to send RMG products in time to export destinations. And due to this we are heading toward air shipment with our own freight costs. In fob shipments freights charges are borne by importers but in air shipments it is our won costs which is eating up our profits.

The profit is being reduced when air charges increase further and currently it is so tough for us to make profits at rising air shipment costs caused different problems. As flights are less due to Covid freights are increasing. But freight charges are paid by buyers when it is exported by ships as free on board. On the other hand to export by air shipment is a problem for exporters as the freight is to be paid by the exporters.

Now the question is why do we go for air shipment? It is very much clear that when we miss sea shipment within the time frame given by the buyers we go for air shipment to keep our commitment that we will send RMG goods to the buyers destination in time. The problem is in higher freight costs and now like ships it is also a problem that in air shipment because of inadequate numbers of carriers.

Air shipment problems happen in two ways. First one is lowered numbers of carrier flights and the second one is ground handling problems in the air port premises. Currently many carriers leave the airport with under-weight as they do not get adequate cargoes due to slow scanning process and to make their flights sustainable they raise freight costs. Now the charges are ten times more than the last two years' back.

In making profits it is a new challenge for export to ship goods in time and we are facing this challenge and we hope to continue the country's economic development's wheel in full active, problems should be removed both locally and internationally. As per the current recovery rates of global economic activities the problems in container shortage may be solved but prior to that our authority in the ports should concentrate on swift activities aiming to reduce hassles, reduce lead time and assist exporters to ship their goods in time.

Container log jams, inadequate testing facilities, workers work abstention, off dock problems and few others sometimes slowdown sea shipment which ultimately hampers trade. In parallel with import and exports it is inevitable that ports capacity should be increased unless there will be a mismatch in doping business. In the coming months export orders may rise as winter and Christmas is ahead and the buyers want to get their ordered ready-made garment products in time that they can do business.

Keeping this in mind we are also preparing to manufacture products as per rising orders and in our side we try to finish production in time but when we see chaotic situation in shipment, we become frustrated. I hope this will come to an end and feeling the trade pulse the government machinery will work for resolving transportation problems and assist to speed up trade.
The Writer Is a Parliament Member of Khulna-4 constituency and President Exporters' Association of Bangladesh, EAB








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