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Freight row hits Bangladesh RMG industry

Freight forwarders in Bangladesh have raised charges by nearly 75 per cent. This has triggered a row with readymade garment exporters. The readymade garment industry, the country's largest industrial sector in export earnings, says the hike in freight forwarding charges is totally unacceptable and would raise the import cost of fabrics and other accessories. Garment factory owners say the forwarders cannot raise a single penny as per the government laws.

Freight forwarders say that the costs associated with handling cargoes have surged manifold over the years and, they needed to raise the charges. They say, this is an issue of survival and that in a free market economy, they can hike rates and that importers have full freedom to avail of their services or look elsewhere. They say that as a matter of fact many importers are getting their goods through direct shipping without taking any services from the forwarders.

To which garment owners retort the forwarders can get the enhanced service charges from their respective principals abroad. 

There are nearly 800 freight forwarders in operation in Bangladesh. Freight forwarders are carriers of apparel products and they deliver the goods to their counterparts from local manufacturers.

 
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