Exporters perturbed by sudden hike in airfreight charges; seek redress from government

• Airfreight charges almost doubled due to flights cancellation 
• NCE writes to SriLankan Airlines Cargo calling for reasonable price structure

Sri Lanka’s exporters were taken by surprise this month when they were suddenly told that they had to pay double the rates they were paying for airfreight until early March and are now in quandary, waiting for redress from the government. 

To this effect, the National Chamber of Exporters (NCE) of Sri Lanka, the private sector representative body for the exporter fraternity, wrote to SriLankan Airlines Cargo last week, requesting to establish a reasonable pricing structure for the exporters engaged in airfreight. 

“Given the fact that the flights are cancelled due to the prevailing situation, which leads to higher charges payable, specially by the exporters of perishable products, has also contributed towards the escalated logistic cost. These current rates are higher than what the exporters used to pay previously. 

“SriLankan Airlines, being the national carrier, has increased the air freight charges drastically during the last few weeks, in addition to the cancellation of flights, due to the coronavirus epidemic,” the letter read. 

The issue had arisen when exporting perishable and non-perishable items, the letter added.  

The correspondence, which had been copied to Secretary to President Dr. P.B. Jayasundera and the relevant stakeholders, urged the government for their immediate intervention to either establish a reasonable pricing structure or restore previous prices. 

Until the first week of March, exporters were paying US$ 1.27 per kilogramme as the freight charge and US$ 8 as the airway bill fee. But since the first week of March, they have been compelled to pay an additional US$ 1.45 per kilogramme and US$ 14 for the 
airway bill fee. 

“This rate has actually doubled from March 15, increasing it to US$ 2.80 a kilogramme and US$ 14 for the airway bill fee for over 500 kilogramme shipments. 
Other charges such as FEC, MOC, CGC have been increased besides AWC and freight by the airlines without informing the exporters, which at the end, accumulate to higher cost,” the NCE letter said. 

One exporter, who engages in large-scale exportation of rooted plants, cut foliage and tissue culture raised plants with multiple clients in Europe and Asia Pacific, said he had been forced to suspend sending shipments via airfreight until proper guidance on rates by the freight forwarders and government.  

“While the customers were thus far willing to make up for the difference in the higher airfreight rates during the last few weeks, they are no longer willing to do so. And it creates confusion. Therefore, at present we hold off some of our orders, until we receive clear guidelines on the rates,” he said.

The company typically has shipments every weekend to at least three destinations and makes shipments to North America too.   

“We request you to resolve this matter as early as possible as a stimulus to continue their operations,” the chamber said in its letter.