News Content
Egyptian Air US-Canada bellyhold cargo ban wreaks havoc in garment sector
THE suspension of cargo on Egypt Air passenger flights to New York and Canada has triggered an export crisis in the country's garment sector, reports Fibre2Fashion of Bopal, Ahmedebad, India.
Egypt Air said that the decision to ban freight on passenger flights is based on recommendations by the US Transportation Security Administration in the aftermath of the Russian jet crash over Sinai on October 31.
Moreover, carriers flying cargo to the US from Egypt must now also be quarantined for 48 hours upon arrival and before transits on domestic flights from local airports, according to the new rules.
Qualified Industrial Zones (QIZ) exporters have been the hardest hit. QIZ gives Egyptian products access to American markets without customs or quotas on condition that the Israeli component represents 10.5 per cent of the finished product.
The value of Egyptian exports to the US through the QIZ agreement was about US$824.2 million in 2014, of which $816.7 million from the spinning, weaving and garments sector.
Mohamed Qassem, chairman of Egypt's the Readymade Garment Export Council, said that about 10 per cent of total monthly exports used to be delivered by air freight, most by passenger flights.
Exporters are now apprehensive that they will now have to rely on the few shipping companies which are expected to raise prices that will increase the exporters' production cost and slash profits.
Egypt Air said that the decision to ban freight on passenger flights is based on recommendations by the US Transportation Security Administration in the aftermath of the Russian jet crash over Sinai on October 31.
Moreover, carriers flying cargo to the US from Egypt must now also be quarantined for 48 hours upon arrival and before transits on domestic flights from local airports, according to the new rules.
Qualified Industrial Zones (QIZ) exporters have been the hardest hit. QIZ gives Egyptian products access to American markets without customs or quotas on condition that the Israeli component represents 10.5 per cent of the finished product.
The value of Egyptian exports to the US through the QIZ agreement was about US$824.2 million in 2014, of which $816.7 million from the spinning, weaving and garments sector.
Mohamed Qassem, chairman of Egypt's the Readymade Garment Export Council, said that about 10 per cent of total monthly exports used to be delivered by air freight, most by passenger flights.
Exporters are now apprehensive that they will now have to rely on the few shipping companies which are expected to raise prices that will increase the exporters' production cost and slash profits.
Latest News
- For the first time, tianjin Port realized the whole process of dock operati...
- From January to August, piracy incidents in Asia increased by 38%!The situa...
- Quasi-conference TSA closes as role redundant in mega merger world
- Singapore says TPP, born again as CPTPP, is now headed for adoption
- Antwerp posts 5th record year with boxes up 4.3pc to 10 million TEU
- Savannah lifts record 4 million TEU in '17 as it deepens port
