Cargo shipment demand to pick up soon
Demand for cargo shipment is expected to rise from the second quarter of this year, following a downturn in the business for a long time due to a recession in the western world, said a senior official of Emirates. "For many reasons we have been in the downtrend for a long time. Hopefully, in the next five-six months all the inventories, which were built up in various markets, will come down," said Ravishankar Mirle, regional manager, cargo commercial operations of Asia and Australasia, Emirates. Mirle particularly pointed at the months of June and July that also coincide with Bangladesh's peak when the winter collection begins to hit malls across Europe and US. "Out of Bangladesh, we carry a lot of readymade garments -- all the branded items you see in the retail markets across the world -- and a lot of these are made in Bangladesh," he said in an interview at Emirates Group Headquarters in Dubai. Emirates runs the cargo business through its brand SkyCargo and its fleet includes eight freighters (three Boeing 747-400Fs, one 747-400ERF and four 777Fs). It now serves 122 destinations in 72 countries on six continents. In fiscal 2010-11, Emirates SkyCargo carried 1.8 million tonnes of cargo, an improvement of 11.8 percent over 1.7 million tonnes in the previous year. Cargo revenue, at $ 2.4 billion, including mail and courier, contributed 17.4 percent of the airline's total transport revenue. In August 2011, Emirates SkyCargo took delivery of its third Boeing 777F. Scheduled freighters now operate in 27 destinations. It also carries a lot of perishables, especially vegetables for the expatriate Bangladeshis in the US and Middle East, couriers, newspapers, pharmaceuticals and metallic golf shafts made in Bangladesh. The airline carried around 15,000-20,000 tonnes of cargo from Dhaka to other places in 2011 and perishable items account for 20 percent. Mirle was especially optimistic about Bangladeshi pharmaceuticals. He said Bangladesh's pharmaceutical market is just picking up and there is high demand for temperature sensitive cargoes worldwide. "Very recently, Bangladesh is seeing a growth in pharmaceuticals. I understand, outside of Dhaka there is going to be a pharmaceuticals corridor where a lot of pharmaceuticals will be manufactured." "So we see a lot of potential," he said. He also said Bangladesh enjoys concession and incentives to develop its pharmaceutical industry. Twenty years ago, Bangladesh had to import pharmaceuticals, but now it has started exporting, which is a good sign, he added. The demand for pharmaceuticals is constant throughout the year, even during recession, and it only increases, he said. "The type of production Bangladesh does is bulk and these are raw materials for products from other parts of the world." The official said they provide strong logistic support and strictly maintain the quality of services as global pharmaceutical companies are interested in the way Emirates carries these products. "Quite a few leading pharmaceutical companies have repeatedly visited our operations in Dubai. They have audited our operations in origin and in destination as well, and in all points, we came out successful." The companies continuously evaluate the airline to make sure it can maintain the requirements on temperature, hygiene and safety. Mirle said the fundamentals in Bangladesh are strong; the quality of production -- particularly of garments -- is good; the buyers continue to come to Bangladesh; the cost of production is good; and deliveries are shipped in time. "So there is no reason why the market will not come back," said the official. Hong Kong, Shanghai, India, UAE and Germany are the top five markets for Emirates SkyCargo, while Bangladesh is among the top 15. Bangladesh accounts for about 1 percent of total products at around 1.8 million tonnes the airline carries a year. Though the share is insignificant, Mirle said the Bangladesh market is important for them as a lot of Bangladeshi exports go to the US and Europe where the airline has strong operations. "We concentrate heavily on the Bangladesh market and we take it very seriously." Mirle also expressed satisfaction over the present level of efficiency in Chittagong Port and said things have improved much in the last year and half. "We were talking about congestion, power, weighing scales and screening machines at the airport, and changes have happened in the last 18 months as authorities have made investment to improve the situation," he said. Mirle also talked about the current challenges they face globally -- rising fuel prices being on the top. The airline spends more than 40 percent of its operating costs on fuel alone. Public relations firm Triune arranged a media trip for a group of Bangladeshi journalists to the Emirates Headquarters in Dubai at the invitation of the airline. Triune Chief Executive Kazi Wahidul Alam led the team.