Trade

Cargo charge cuts stuck in limbo

Three months on, no progress despite CAAB proposals

Written by The Banking Post



Efforts to reduce cargo handling charges at Bangladesh’s airports remain stalled, even three months after the Civil Aviation Authority of Bangladesh (CAAB) submitted a report recommending fee cuts.

The Ministry of Civil Aviation and Tourism has yet to act on the proposals, which were meant to ease export costs after India revoked third-country transhipment facilities in April. The move forced Bangladeshi exporters, especially garment makers, to rely more heavily on local airports for cargo shipments.

In its May 19 report, CAAB suggested lowering several fees, including:

  • Cutting explosive detection system screening charges by 25% to $0.06 per kg
  • Reducing terminal handling charges by Biman Bangladesh Airlines from $0.08 to $0.06 per kg
  • Dropping Biman’s cargo handling fee from $0.10 to $0.07 per kg
  • Waiving the RA3 surcharge of $0.02 per kg on Europe-bound cargo, as no actual service is provided
  • Reducing landing charges for freighters by 25% at Dhaka and 35% at Sylhet

But the ministry rejected the recommendations as “too minimal” and asked CAAB to resubmit the report with further cuts and comparisons with regional airports. As of Wednesday, no revised report has been submitted.

CAAB officials argue that the initial recommendations already offered the maximum possible reductions. “We cannot suggest further cuts since the proposals were made after considering the highest possible waivers,” said a senior CAAB official.

Exporters, meanwhile, voiced frustration. “It is really frustrating,” said a former director of the Bangladesh Freight Forwarders Association, urging authorities to act swiftly to bring down costs and support trade.


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