Cargo piles up at HSIA as C&F agents observe strike for 3 days

Nearly 1,500 tonnes of cargo have been stockpiled at the Hazrat Shahjalal International Airport (HSIA) in Dhaka over the past three days due to a strike called by clearing and forwarding (C&F) agents.

Of the amount, nearly 800 tonnes are imported goods while another 700 tonnes, mainly garment items, are meant for export.

The pile-up comes as C&F agents observed work abstention in the past three days as they demanded withdrawal of the newly implemented express delivery service at the HSIA, which is costing them business.

They ended agitation yesterday after assurance that the rules may be amended.

Under the new rules, which came into effect from June 6, any export or import consignment under 30 kilogrammes (kgs) will be delivered by express delivery service providers.

This will be beneficial for exporters because, under express delivery services, goods are released in a day. However, under normal delivery services, it takes between seven days and two weeks due to bureaucratic complexity, especially unexpected delays in customs services.

The rules were made in consultation with stakeholders, including C&F agents, but perhaps they did not realise the implications of the rules when they were framed, Kabir Ahmed, president of the International Air Express Association of Bangladesh (IAEB), said.

Md Khairul Alam Bhuiyan Mithu, vice-president of the Dhaka Customs Agents Association (DCAA), said they had withdrawn the strike after consultation with the customs commissioner, who assured them that the rules may be amended.

"If a memorandum of understanding on amending the rules is not signed by Sunday, we will go on strike again from Monday," Mithu told The Daily Star over the phone.

Nearly 2,000 C&F agents have been working at the HSIA over the past 53 years, but their names were not included on the list of express delivery service providers, which caused a furore.

Mithu said they want those names to be included alongside foreign companies.

Currently, most express delivery service providers have affiliation with the IAEB, which has 81 members. Of the total members, 35 are currently operating while the remaining are in the process of obtaining licences.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the strike had caused a lot of trouble.

"We are facing a lot of difficulties as imported goods cannot be released from the airport and goods cannot be exported through air shipment," he said over the phone yesterday.

International clothing retailers and brands are especially worried by the stalemate as it has hindered the timely shipment of goods, Kochi added.

The HSIA is an important gateway for international trade as nearly 700 tonnes of goods are imported and exported through the airport daily.

Air shipments are viewed as an emergency measure, used only when both senders and receivers want quick delivery of goods. The service is expensive.

For instance, it costs nearly $4 to send each kg of goods to any destination in Europe from the HSIA. However, it would cost less than 20 US cents if goods were delivered to the same destination through waterways even after the recent rate hike due to the Red Sea crisis.

Preferring anonymity, a garment exporter at the Dhaka Export Processing Zone said stockpiles of exportable garment items were building up at the factory level because of the strike.