Bangladesh’s garment exporters are confronting a logistical crisis following India’s abrupt suspension of a key air transshipment route that had become a preferred conduit for fast, cost-effective cargo shipments to global markets.
The route, which operated via the Kolkata and Delhi airports, enabled exporters to move goods overland through the Benapole-Petrapole border and fly them out from India.
It grew in popularity during the Covid-19 pandemic, often offering swifter turnaround and lower costs than the chronically congested Hazrat Shahjalal International Airport (HSIA) in Dhaka.
Industry estimates suggest nearly 18% of the country’s air-freighted garments were channelled through Indian airports.
Prior to the ban, around 600 of the 3,400 tonnes of weekly garment exports were flown out via India, according to the Bangladesh Freight Forwarders Association (BAFFA).
The government has acknowledged the fragility of airport infrastructure and pledged reform. Commerce Secretary Mahbubur Rahman noted efforts to reduce ground-handling fees and modernise HSIA’s cargo services, while Commerce Adviser Sk Bashir Uddin convened high-level meetings to strengthen Dhaka and Sylhet as viable export gateways.
There is cautious optimism around the soon-to-open third terminal at HSIA, hailed by industry leaders for its state-of-the-art scanning, testing, and temperature-controlled facilities.
“The third terminal is the finest—it's just like Singapore’s airport,” remarked Kabir Ahmed, BAFFA president.
Nonetheless, the Indian decision has unnerved exporters. “It does hamper potential, especially intraregional potential,” said Rubana Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), although she noted that Bangladesh’s traditional reliance on direct shipping may cushion the immediate impact.
Government officials echoed her measured tone. Mahbubur Rahman clarified that transshipment to Nepal and Bhutan via Bhomra land port remains unaffected. Dhaka will engage New Delhi diplomatically while accelerating domestic reforms to safeguard export competitiveness.
Yet for many in the fast-fashion trade—where lead times are tight and delays unforgiving—the ban is a major setback. Exporters are expected to reroute more cargo through HSIA, further straining an already overburdened system.
Others are eyeing alternative routes via the Maldives or considering the reactivation of Chattogram and Sylhet airports.
Cost and efficiency drove exporters towards India.
While air-shipping a kilogramme of apparel to Europe from Dhaka costs between $2.90 and $4.50, Indian routes typically came in at $2.60 per kg, inclusive of overland transport.
Global fashion giants such as Inditex, the parent company of Zara, found India’s streamlined operations ideal. Local suppliers leveraged the route to trim lead times and maintain tight delivery schedules.
By contrast, exporters have long decried the dysfunction at HSIA.
The airport’s cargo village, built for 300 tonnes, routinely handles over 800 tonnes daily—soaring to 1,200 tonnes during peak periods.
Chronic mismanagement has led to goods being left exposed to the elements, with high ground-handling fees compounding exporters' woes.
Currently, Dhaka levies 29 cents per kilogramme in handling fees—nearly six times Delhi’s five cents.
Add to that a significant disparity in jet fuel costs, with Dhaka prices 30% higher than India’s, and the allure of Indian airports becomes clear. “Jet fuel accounts for 40% of an airline’s costs,” said Biman spokesperson Bushra Islam. “Why wouldn’t a businessman choose Delhi over Dhaka?”
On average, HSIA exports 175,000 tonnes of cargo annually. Biman Bangladesh Airlines transports 16 to 17% of this, while also providing ground handling for other carriers.
Bushra added that Biman’s handling capacity will double with the third terminal, which alone will offer 36,000 square metres of space—more than all current terminals combined—and a capacity of 546,000 tonnes annually.
A senior cargo official, requesting anonymity, clarified that fees such as overflying and parking are imposed by the Civil Aviation Authority of Bangladesh (CAAB), not Biman. Infrastructure, too, remains a constraint: aircraft exceeding certain weights cannot land at Dhaka due to runway limitations.
Moreover, the absence of major global retail stores in Bangladesh means few inbound shipments, increasing the cost of cargo flights that return empty. In contrast, Indian airports serve vast retail markets, enabling airlines to operate more economically in both directions.
The official added that Commerce Adviser Sk Bashir Uddin met aviation stakeholders on Wednesday to seek solutions. “We hope for a positive outcome soon,” he said.
Unlike passenger operations, cargo is demand-driven. When volumes rise, exporters often charter dedicated freighters; when they fall, airlines shift cargo to the bellies of passenger aircraft.
Airlines including Emirates, Cathay Pacific, Qatar Airways, Turkish Airlines, and Ethiopian Airlines currently operate cargo flights from Dhaka.
Meanwhile, CAAB Chairman Air Vice Marshal Monjur Kabir Bhuiyan announced that Sylhet will open to cargo operations on 27 April, with Chattogram soon to follow.
“With the third terminal’s automation and expanded capacity, we can manage our own cargo and grow our revenues,” he said.
As the industry adapts, exporters and policymakers alike are waking to a sobering reality: the reliance on foreign routes may have been a temporary fix—but fixing the home front is now an urgent imperative.
