The recent political upheaval in Bangladesh temporarily halted the transshipment of ready-made garments via Delhi but after days of the logjam, the situation has eased.
Consignments that were stuck at the India-Bangladesh border are now en route to Delhi and the airport operator has chalked out plans for quick processing of goods for their re-export.
cargo hub
Delhi Airport positioned itself as a leading transshipment cargo hub in the region after handling the first consignment of Bangladesh-origin cargo last February. In FY24, Delhi airport handled 13,000 tonnes of cargo from Bangladesh. The major export markets for Bangladesh-manufactured garments include France, the Netherlands, Spain, and the UK.
The peak season for garment exports runs from August to December and then from February to March every year. Delhi Airport registered a 25 per cent growth in ready-made garment exports in the first quarter of FY25. These included exports from both India and Bangladesh. The increase was driven by a shift of some trade from sea to air due to the Red Sea crisis and an increase in Indian exports due to a shift of orders from Bangladesh.
However, volumes of Bangladesh-origin exports handled by Delhi airport decreased by 30 per cent in the April-June quarter compared to the January-March period. This was due to the lean season and ongoing situation in Bangladesh, Delhi International Airport Ltd (DIAL) spokesperson said.
“We are continuously in touch with our partners in Bangladesh and evaluating the situation. We are in touch with the Land Port Authority of India, Petrapole, West Bengal to help trade with streamlining of the supply chain disruptions,” DIAL said.
The airport said it has chalked out plans for the swift processing of cargo upon its arrival in Delhi by road. Additionally, to manage increased volumes, the airport has installed two additional X-ray machines and opened extra truck docks.
Market impact
Garment production units in Bangladesh were shut down amid political protests in the country. A the Financial Times report on August 15 noted that global fashion brands shifted their orders from Bangladesh to other countries in South-East Asia fearing delivery delays ahead of winter retail season.
The Union Textile Ministry has also held discussions with Indian exporters about capitalizing on business opportunities as brands seek to reduce their exposure to Bangladesh.
The recent protests have also disrupted air cargo movements from Bangladesh, leading to increasing processing times and rates. However, the situation is now improving.
“While we experienced some disruptions we’ve resolved them, and our operations are now running smoothly,” said Tarun Patwary, country manager (Bangladesh) of global freight forwarder Kuehne+Nagel.
