Bangladeshi freight forwarders have started flying cargo to the West Coast of the United States via China, as rising airfreight prices elsewhere mean it is more cost-effective than using Middle Eastern hubs.

In addition to soaring rates departing from Dhaka, freight forwarders have reported that hub airports in the Middle East have become overcrowded in recent weeks, especially as regional tensions have risen and airlines have been forced to cancel flights.

Last month, Expo Freight, one of Bangladesh's largest freight forwarders, sent 100 tons of cargo to the United States via China, and Wax Logistics and APS Logistics also sent goods on this route.

Wenwen Zhang, Air Cargo Analyst at Xeneta, told The Loadstar: "The Bangladesh outbound air cargo market is highly vulnerable to market disruptions as more than 70% of cargo volume is procured in the spot market.

"Spot freight rates from Bangladesh to Europe surged to $5.34 per kg in the week ending September 22, the highest level in two and a half years and close to the epidemic peak of $5.71 in late November 2021. Dynamic load factor also remained at a high level, reaching 96% in the same week.

"For the return trip, the spot price reached $2.25 per kilogram. While that marks an increase from recent lows in late July, it's still down from $2.90 in early June.

"Spot prices from Bangladesh to the US rose to $7.83 a kg, the highest in more than two years."

Mahbubul Anam, General Manager of Expo Freight, explained: "I did not have access to the space needed to deliver goods via traditional routes, so a new route was explored.

"China is cheaper than the Middle East. By using Chinese airports to transship cargo, we can save about $1 per kilogram."

"The cargo capacity of Chinese airlines departing from Dhaka is sufficient, so the route can be a viable option for transshipment," he added.

Poor infrastructure in Dhaka has also been cited as a reason for the route change. Nasir Ahmed Khan, vice president of the Bangladesh Freight Forwarders Association, explained that due to problems with scanners in Dhaka and congestion in the Middle East, freight forwarders are "forced to look for alternatives." Dhaka Airport exports about 700 to 800 tons per day.

India has also become increasingly popular as a transshipment point for goods from Bangladesh to the United States and the European Union, which are trucked to Delhi and flown from there.

It's not just air freight: Freight forwarders now also use sea and air routes, flying to China by ship and to the United States or Europe by flight.

Rotate data shows that so far this year, air cargo capacity from the Asia-Pacific region to North America is up 16 percent compared to last year, while air cargo capacity to Europe is up 19 percent. Last week, capacity to Europe was up 21 percent from a year earlier, while capacity to North America was up 13 percent.