Dhaka, Bangladesh: Exporters in Bangladesh's garment sector are facing a critical juncture after India abruptly closed a transshipment route that had become vital for international air cargo shipments.

The now-defunct route, which moved goods via Kolkata and Delhi airports through the Benapole-Petrapole land border, gained popularity during and after the Covid-19 pandemic. It offered quicker delivery and often lower costs compared to using Dhaka’s overburdened Hazrat Shahjalal International Airport (HSIA).

According to the Bangladesh Freight Forwarders Association, around 18% of Bangladesh’s garment air cargo—approximately 600 tonnes per week—was routed through Indian airports. Bangladesh exports roughly 3,400 tonnes of garments by air weekly.

The Bangladeshi government has acknowledged the strain on its airports and is working on reforms. Commerce Secretary Mahbubur Rahman noted that efforts are underway to reduce HSIA's ground handling costs and improve cargo efficiency. Commerce Adviser Sk Bashir Uddin has also engaged with relevant ministries to upgrade Dhaka and Sylhet airports as competitive export hubs.

Industry stakeholders are pinning hopes on HSIA’s new third terminal, which features advanced scanning, testing, and temperature-controlled facilities. "The third terminal is top-notch—comparable to Singapore’s airport," said Kabir Ahmed, President of the Bangladesh Freight Forwarders Association.

Nevertheless, the Indian ban has sparked concern. "It does impact potential, especially for intraregional trade," said Rubana Huq, former President of the Bangladesh Garment Manufacturers and Exporters Association. She noted that while Bangladesh has historically favored direct shipping, the loss of the transshipment route adds pressure to an already burdened system.

Government officials echoed this sentiment, adding that routes through Bhomra land port to Nepal and Bhutan remain unaffected. Rahman assured that Bangladesh would address the issue diplomatically while pushing forward with domestic infrastructure upgrades.

The immediate challenge, however, lies in managing time-sensitive exports for fast-fashion brands. With Indian airport access blocked, exporters are forced to depend more on HSIA, straining its infrastructure further. In some cases, goods may be rerouted through alternatives like the Maldives.

Cost was a major factor behind exporters’ preference for Indian transshipment. While HSIA-to-Europe air cargo typically costs $2.90–$3.20 per kilogram (rising to $4.50 in peak seasons), Indian routing was around $2.60 per kilogram—even after including overland transport.

Global buyers like Inditex (Zara’s parent company), which has a distribution hub in Delhi, preferred the Indian route for speed and cost-efficiency. Meanwhile, exporters in Bangladesh have long complained about HSIA’s inefficiencies. The airport’s cargo village, designed for 300 tonnes daily, often handles over 800 tonnes, spiking to 1,200 tonnes in peak seasons. Ground handling issues, lack of modern equipment, and mismanagement frequently delay shipments.

Handling charges are another pain point—Dhaka levies 29 cents per kilogram versus just five cents in Delhi. Combined with higher jet fuel prices (about 30% more in Dhaka), Indian airports have had a clear cost advantage. "Jet fuel accounts for 40% of airline operating costs," noted Biman spokesperson Bushra Islam.

Bushra also highlighted Biman’s limited share—handling only 16–17% of Dhaka’s 175,000-tonne annual cargo exports. The third terminal is expected to boost this significantly, adding 36,000 square meters of space and increasing capacity to 546,000 tonnes per year, up from the current 200,000.

A Biman cargo department official, speaking anonymously, clarified that various fees are set by the Civil Aviation Authority of Bangladesh (CAAB), not Biman. Infrastructure issues, such as runway limitations for heavier aircraft, also hinder operations at HSIA.

Unlike major Indian cities, Dhaka lacks retail brand outlets, reducing inbound cargo opportunities. In India, aircraft can carry goods in both directions, making operations more cost-effective.

A meeting with Commerce Adviser Sk Bashir Uddin was held to address these concerns. "We hope for a positive outcome soon," said one attendee.

Cargo transport operates differently from passenger services, with demand-driven scheduling. Airlines like Emirates, Cathay Pacific, Qatar Airways, Turkish Airlines, and Ethiopian Airlines currently run dedicated cargo flights from Dhaka.

"We’re opening Sylhet for cargo on the 27th, and Chattogram will follow," said CAAB Chairman Air Vice Marshal Monjur Kabir Bhuiyan. "With the third terminal’s capacity and full automation, we’ll be able to handle our own cargo efficiently and boost national revenue."