Streamlining Fashion Cargo Logistics: A Land-Air Hybrid Success Story

Customer Overview:

A global fashion conglomerate operating in the fashion retail industry sought a solution to streamline its air cargo operations from Bangladesh to various destinations worldwide. With a significant presence in online and offline fashion markets, this customer required a unique, cost-effective solution to overcome challenges related to fluctuating rates, long transit times, and seasonal congestion affecting Dhaka Airport.

The Challenge:

The customer faced several logistical hurdles in its air cargo operations, primarily stemming from the Dhaka Airport. High fluctuations in cargo rates, prolonged transit times, and the impact of peak export seasons significantly impacted their ability to efficiently transport fashion products to global destinations. These challenges not only increased operational costs but also hindered timely deliveries, affecting customer satisfaction.

The Solution:

To address these challenges, we opted for a customized solution that optimized their air cargo route. The solution involved a strategic shift from traditional air cargo routes to a land-air hybrid approach for exports. The cargo was customs cleared at Benapole and Petrapole, streamlining the export process. Subsequently, the cargo underwent land-based transportation from Petrapole to either Kolkata or Delhi, effectively diminishing transit times and bypassing the congestion at Dhaka Airport. From there, it was seamlessly transitioned to air freight for onward shipment to multiple European destinations, thereby efficiently meeting the global demand for fashion products.

Land Air Key Points:

Several critical aspects were integral to the success of this solution:

• Certificate of Origin: The solution mandated the issuance of a certificate of origin for every cargo, ensuring compliance with international trade regulations.

• VTS-Enabled Trucks: The customer utilized their own fleet of VTS (Vehicle Tracking System)-enabled trucks, enhancing cargo tracking and security.

• Same-Day Customs Clearance: Streamlining customs clearance processes at Benapole and Petrapole reduced transit times and expedited cargo movement.

• Optimised Routing: The route from Dhaka to Benapole to Petrapole to CCU/Delhi was carefully designed to minimize transit times and avoid congestion.

• Adaptation to Airport Regulations: Notably, there are different sets of regulations to be followed at Delhi Airport. MGH ensured seamless adaptation to these regulations and provided guidance to shippers, further enhancing the flow of cargo.

Outcome:

By implementing this innovative solution, the customer achieved remarkable results. They successfully navigated the challenges posed by fluctuating cargo rates, long transit times, and airport congestion at Dhaka Airport. The optimized land-air route not only reduced operational costs but also improved delivery timelines, enhancing overall customer satisfaction. This achievement was made possible due to the operational efficiency and collaborative efforts of the customer's teams in Bangladesh and India, particularly the dedicated teams at Benapole, who played a pivotal role in the successful execution of this solution.