Category: General
Country: Bangladesh
Region: South Asia
Bangladesh’s US$40bn garment trade could be at risk following an airport cargo fire, which is disrupting exports soon before Christmas retail surge
By Libby Hargreaves
21st October, 2025
Reading time: 3 minutes
A major fire at Bangladesh’s Hazrat Shahjalal International Airport has thrown the country’s garment export logistics into turmoil.
With damages estimated at more than US$1bn, freight delays are now rippling through global supply chains just as retailers prepare for the pre-Christmas peak season.
The blaze broke out in the cargo village at Dhaka’s Hazrat Shahjalal International Airport – Bangladesh’s busiest air logistics hub – on 14 October. The facility handles high volumes of textile goods, pharmaceuticals and chemicals bound for Europe and North America.
Flights and freight operations were suspended for more than 27 hours as emergency crews worked to contain the blaze. Thick smoke spread across the tarmac and heaps of cargo lay scattered across the damaged site.
The airport fire was Bangladesh’s third major blaze in one week. Just days earlier, a warehouse fire killed at least 16 people and another destroyed a seven-storey garment factory in Chittagong. These incidents highlight chronic safety weaknesses across industrial and logistics infrastructure.
The incident occurred during the critical export window ahead of Christmas, when international demand from Europe and North America typically surges.
Mariusz Filec, Airfreight Product Director CEE at Rohlig SUUS Logistics, explains: “Dhaka Airport (DAC), located in the capital of Bangladesh, is a key logistics hub in the region; therefore, the fire at its import cargo terminal has significantly disrupted supply chain operations on this route.”
The cargo village suffered heavy structural damage, including to customs screening areas, bonded storage and freight-handling equipment.
With Dhaka acting as Bangladesh’s main air cargo gateway, rerouting freight through alternative airports remains a logistical challenge. Freight forwarders face bottlenecks as they seek to restore normal service.
“Some of the goods destroyed were ‘essential’ samples for securing new buyers, which means affected businesses could lose out on future opportunities,” says Inamul Haq Khan, Senior Vice-President of the Bangladesh Garment Manufacturers and Exporters Association.
The International Air Express Association of Bangladesh estimates total damages lie at more than US$1bn - including burnt goods, warehouse reconstruction and the cost of rerouting supply chains.
Garment sector feels the pressure
Bangladesh is the world’s second-largest clothing exporter after China. The garment sector generates around US$40bn annually, more than a tenth of the country’s GDP, and contributes more than 80% of its total export earnings. Global retailers such as H&M and Walmart depend on Bangladeshi suppliers to meet fast fashion demand.
The airport fire destroyed fabrics, chemical dyes and sample garments vital for securing new contracts. Many factories are now awaiting replacement materials before resuming full production. The loss of these goods disrupts delivery schedules, with delays threatening Bangladesh’s reliability as a supplier to major retail chains.
To manage urgent orders, exporters are redirecting some consignments through Chittagong port or Hazrat Amanat International Airport. Others turn to sea-air routes through Colombo, Singapore, Dubai or Malé. However, maritime transits take longer and raise freight costs, eroding Bangladesh’s time advantage in global apparel markets.
The event exposes the risk of relying on a single cargo hub as logistics experts call for regional warehousing and decentralised distribution facilities to prevent similar bottlenecks in future.
Courtesy: supplychaindigital.com
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