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New EU security rules drive up Bangladesh air freight costs
STRICTER cargo security requirements introduced on June 1 by the European Union on freight from Bangladesh have increased cost to supply chains and lengthened lead times by three days.
The new EU policy stipulates that all exports from Bangaladesh must be screened by x-ray machines and also using explosive detection systems -either an explosive detection dog unit (EDD) or an explosive detection system (EDS).
Bangladesh Freight Forwarders Association director Nurul Amin, who is also managing director of Tower Freight Logistics, told London's Air Cargo News that Dhaka's Hazrat Shahjalal airport had neither an EDD or EDS.
The Civil Aviation Authority of Bangladesh has plans to bring in two EDS machines, but these will not be available until mid-August.
Even after implementing the EDS machines, Bangladesh will need to get a clearance certificate from the UN's International Civil Aviation Organisation (ICAO) and the EU will need to send security inspectors to check the new arrangements.
Meanwhile, cargo is being routed through airlines' hubs where it is being re-screened, but they are passing the cost of this onto forwarders, while capacity has also been reduced and as a result prices are increasing.
"Air freight from Bangladesh has to bear the additional cost of getting EDD or EDS screened in a third country, namely at the country where the hub of the airlines is located," he said.
"Airlines have already started applying extra cost for additional re-screening. Air freight costs are also increasing as airlines are reducing capacity to cope the re-screening process at transit points.
"The new regulations will also lead to delay in transit time by two to three days."
The new EU policy stipulates that all exports from Bangaladesh must be screened by x-ray machines and also using explosive detection systems -either an explosive detection dog unit (EDD) or an explosive detection system (EDS).
Bangladesh Freight Forwarders Association director Nurul Amin, who is also managing director of Tower Freight Logistics, told London's Air Cargo News that Dhaka's Hazrat Shahjalal airport had neither an EDD or EDS.
The Civil Aviation Authority of Bangladesh has plans to bring in two EDS machines, but these will not be available until mid-August.
Even after implementing the EDS machines, Bangladesh will need to get a clearance certificate from the UN's International Civil Aviation Organisation (ICAO) and the EU will need to send security inspectors to check the new arrangements.
Meanwhile, cargo is being routed through airlines' hubs where it is being re-screened, but they are passing the cost of this onto forwarders, while capacity has also been reduced and as a result prices are increasing.
"Air freight from Bangladesh has to bear the additional cost of getting EDD or EDS screened in a third country, namely at the country where the hub of the airlines is located," he said.
"Airlines have already started applying extra cost for additional re-screening. Air freight costs are also increasing as airlines are reducing capacity to cope the re-screening process at transit points.
"The new regulations will also lead to delay in transit time by two to three days."
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