Inditex Gets Bangladesh's Inaugural Shipment on New Air Cargo Route

Yahoo

28-04-2025

Bangladesh debuted its first freighter flight out of Sylhet's Osmani International Airport late Sunday as its aviation authority makes more room for air cargo to exit the country.
The government's decision to expedite the launch comes as the country seeks to be more self-reliant in moving exports via air.
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On April 8, India revoked Bangladesh's access to its transshipment services, furthering the need for Bangladesh to fast-track a new air freight option.
India's service previously enabled Bangladesh to export goods via its land customs stations into Indian ports and airports. However, Indian officials said the excessive outflow of goods was creating congestion at these logistics chokepoints and escalating costs.
Inditex, the parent company of fast-fashion giant Zara, as well as Bershka and Pull&Bear among others, will be the recipient of the cargo, which consists of 60 metric tons of ready-made garments (RMG).
The freighter, operated by Galistair Aviation, departed Sylhet to Zaragoza, Spain via Dubai. Biman Bangladesh Airlines provided ground-handling services for the operation.
'From now on, one cargo flight will go to Spain per week,' said Osmani International Airport director Hafiz Ahmed during the flight's inauguration. 'If the demand of exporting increases, the number of flights will also be increased.'
In total, the service will operate two cargo flights per week, but it is unknown where the second flight will travel.
Sheikh Bashir Uddin, Bangladesh's civil aviation and tourism affairs adviser, said the initiative would help cut air freight costs for the country's exporters by up to 13 percent on routes to Europe, reversing a recent price escalation.
'Air cargo spot rates from Bangladesh to Europe increased 12 percent in the week ending April 20, with India's withdrawal of transshipment facilities for Bangladesh exports likely contributing to the upward pressure on this corridor,' said Wenwen Zhang, lead of air freight development and analyses at Xeneta.
Zhang told Sourcing Journal that increased freighter flights out of Bangladesh would help to bridge the gap in air freight capacity lost through the removal India's transshipment facilities.
But she also noted that the regional situation should also be seen in a global context as the wider tariff situation plays out. Bangladesh currently has a 10-percent baseline tariff imposed by the U.S.
'Rates from Bangladesh have not increased to the same extent into the U.S., but we could see a rush of cargo out of nations such as Bangladesh following a 90-day pause in reciprocal tariffs on all nations other than China,' Zhang said. 'This could then put further upward pressure on rates.'
On the other hand, downward pressure could come if the U.S.-China trade war results in lower volumes out of China, which would 'free up significant air freight capacity which could find its way onto other trades, such as Bangladesh to Europe and the U.S.'
Lobbyists like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) had been calling on the Bangladeshi government to immediately incentivize more airlines that serve airports in Dhaka, Chattogram and Sylhet after India's transshipment ban. The association had also urged India to reinstate the logistics service to no avail.
Exporters near Sylhet have long been had to reroute shipments to Dhaka, the primary air cargo hub in Bangladesh, or India via the transshipment program. According to data from the Bangladesh Freight Forwarders Association, roughly 18 percent of Bangladesh's garment air cargo was flown through Indian airports, mostly via Delhi and Kolkata.
According to the BGMEA, Bangladesh apparel exporters shipped over 34,900 metric tons of garments worth $462.34 million to 36 countries through Indian airports from January 2024 to March 2025.
The Civil Aviation Authority of Bangladesh (CAAB) is overseeing the operation at Sylhet, having upgraded Osmani Airport by equipping it with explosive detection systems, X-ray scanners and reinforced security protocols.
CAAB is also actively working to resume cargo flight services at Chattogram's Shah Amanat International Airport, which have remained dormant since 2022.
'The airport is already prepared for exporting cargo items to different countries except for E.U. destinations,' Shakil Meraj, director of cargo at Biman Bangladesh Airlines, told publication The Daily Star. 'Now, necessary steps are being taken to export goods to E.U. countries.'
As Bangladesh works around its trade relationship with India, the latter has seen trade come to a standstill with its other neighbor, Pakistan.
The often-rocky relations between the two countries drastically worsened after 26 people were killed in a terrorist attack on April 22 in Indian-administered Kashmir region.
In response to the attack, India shut down the Attari land port situated on its border with Pakistan. Pakistan fired back by suspending all trade with India, including routes through third countries, and closing its airspace to all Indian airlines.
India's air cargo sector could see a hike in freight rates out of Delhi, particularly on trips to the Middle East, now that they have to circumvent Pakistani borders. Flights would be forced to fly an hour extra, which would mean higher fuel costs and less cargo moved to accommodate the extra fuel.
The inconveniences for Indian airlines don't end there. Earlier in April, Mumbai International Airport said it would suspend cargo operations starting August 16 as the gateway plans $1.2 billion in infrastructure upgrades.
Freighter slots at Mumbai International Airport, the second-business air cargo hub in India, will be temporarily shut down until further notice, according to various reports. The airport is looking to bolster cargo-handling abilities by building a new domestic terminal and taxiway, and expanding an international terminal.
The move also is part of airport owner Adani Group's strategy to shift more air cargo operations to Navi Mumbai International Airport, which is set to open in June.
The shift could be a speed bump for an industry which Boeing projects to quadruple through 2043.