AIR CARGO OPPORTUNITIES and CHALLENGES

[Virtual Presenter] Good morning everyone, I am here to talk about the opportunities and challenges in air cargo for Bangladesh, Canada, and other countries. We will analyze shipping volume, cost, and time, and compare air freight versus sea freight cost and shipping time. We will also look at some pictures of various cargo and containers. Let us start the presentation..

[Audio] Bangladesh is playing an increasingly important role in the cargo market when comparing air and sea freight. The country boasts several modern cargo ships, which allow goods to be transported efficiently and cost-effectively to and from Canada. Cargo planes also serve as a viable form of transportation for goods, as they are usually faster than cargo ships and can reach more remote locations. While both forms of shipment can be used successfully in Bangladesh, there are differences in considerations and costs that must be taken into account..

[Audio] When considering air freight and sea freight, businesses must weigh the pros and cons of each. Air freight is fast but can be costly, while sea freight is typically less expensive but slower. Factors such as distance, timing, and regulations can influence the cost of either option. In the Asia Pacific region, sea freight is the dominant choice for cargo worth 197 billion USD, yet air freight is still used given its speed even at a higher cost..

[Audio] Bangladesh plays a major role in the air cargo market in the Asia Pacific region. Looking at this slide, it is clear that there are a number of differences between air freight and sea freight. Air freight is commonly more expensive and quicker in transit, whereas sea freight is more cost-effective but slower in transit. Additionally, volume of goods is an important factor when considering whether to use air freight or sea freight, as air freight can be more viable when transporting larger volumes, despite the higher cost per unit..

[Audio] The data in this slide showcases the volume, cost, and time for shipping of cargo between Bangladesh, Canada, and other regions of the world. The average shipping volume is 24000 ETU’s equivalent to 165000 Tones of cargo, with a shipping cost of 1 USD per kg and a shipping time of up to 2 months. However, when opting for air freight, the shipping time is much faster at 3 to 4 days and the cost is 5 to 6 USD per kg, making it a better option for faster shipping..

[Audio] Air freight offers an untapped resource, despite only 1% of global cargo being transported by air, with an estimated value of 197 billion USD. This provides an incentive to examine the potential of air freight transportation. Average prices for air cargo are significantly higher than sea freight, ranging from $100 to $65, which can be difficult to sustain for bigger companies. However, the speed and reliability of air freight can provide worthwhile rewards. It is worth looking into the air cargo opportunities available across various regions..

[Audio] Bangladesh has become an increasingly significant player in the international cargo market. Estimated freight volumes travelling through its ports have made great advances in recent years with the Asia Pacific region showing the highest upturn. The chart illustrates this growth as the Asia Pacific region tops the sales list compared to other regions; Africa, Latin America, Russia, Central Asia and the Middle East all displaying decreased growth. North America and Europe are placed second on the sales table. To accommodate this increased demand, Bangladesh has upgraded its infrastructure and port operations to provide cost effective and efficient cargo transportation solutions to businesses globally..

[Audio] The Asia Pacific region is a major hub for air and sea freight services and has earned its moniker as 'the factory of the world' due to the amount of goods and products produced and sold. Examples of products shipped in and out of the region include high-tech products, perishable goods, automotive parts, pharmaceuticals, and fashion items, all of which require different approaches with regards to shipment costs, time, and volume. When assessing the opportunities and challenges of air and sea freight in Bangladesh, it is necessary to consider the influence the Asia Pacific region has had on the current cargo market..

[Audio] Air cargo from Bangladesh can deliver a wide range of products to any destination around the globe. Electronic devices, vegetables and all other items can be expeditiously transported with air cargo, and at a cost that is often lower than sea freight, making air cargo a viable choice for international shipments..

[Audio] Having the right goods available and being sure of their quality is essential for successful business operations. Ensuring customers are satisfied with the products they order is key to developing strong customer relations and a thriving business. For the air cargo market, knowledge of the latest trends and technologies is essential in order to remain competitive. Bangladesh, being strategically positioned in the Asia Pacific region and a major centre of production, is particularly affected by these market changes. It is thus important for cargo companies to keep up-to-date with the latest developments in order to remain competitive in the market..

[Audio] The chart illustrates the changes in air cargo shipments over the past 40 years. Initially, from 1973 to the late 1990s, air cargo shipments remained at a stable rate. Nevertheless, from 1999 onwards, there was a huge surge in the number of air cargo shipments, peaking in 2006 and 2007. Subsequently, there has been a downward trend due to changes in shipping cost structures and a reduced demand for air cargo. Nevertheless, Bangladesh and other countries are striving to leverage air cargo and benefit from advancements in the air freight market..