— Garment, pharmaceutical and agriculture sectors brace for ripple effects
The devastating fire at Hazrat Shahjalal International Airport’s Cargo Village on Saturday is now feared to cause over $1 billion in direct and indirect losses to Bangladesh’s import–export sector, according to industry leaders and trade representatives.
Though the extent of direct damage is yet to be fully assessed, stakeholders warn of a far-reaching impact on trade, supply chains, and export commitments.
A Blow to Trade Nerve Centre
The cargo village, a critical hub for air-freighted goods, handles lightweight machinery, electronics, ready-made garments (RMG), accessories, documents, and pharmaceutical raw materials.
Kabir Ahmed Khan, president of the International Air Express Association of Bangladesh, told The Business Standard that the combined impact of the fire could exceed $1 billion, considering both immediate damage and cascading effects such as shipment delays, forced discounts, and cancelled export orders.
“It’s too early to estimate the direct losses. But the overall impact – both direct and indirect – on imports and exports could exceed $1 billion,” he said.
Garment Sector on the Line
The RMG sector, which accounts for nearly 85% of Bangladesh’s exports, faces the highest risk.
Fazlee Shamim Ehsan, executive president of BKMEA, expressed concern that export losses alone could cross $1 billion.
“These losses include not only the damaged goods but also cancelled orders due to delays in receiving raw materials, forced discounts from buyers, and missed sample delivery deadlines,” he said.
Ehsan, who also had accessories stored at the cargo village, noted that over 500 garment exporters had consignments in the affected area. Even small losses in accessories could stall exports worth millions.
For example, losing accessories worth $2,000 could disrupt $200,000 worth of shipments, he explained. Re-importing or air-shipping again would cost nearly half the product’s value.
Pharma, Agriculture Also Affected
Apart from RMG, the pharmaceutical and agriculture sectors have also suffered losses. One pharmaceutical company representative reported losing $75,000 worth of raw chemical ingredients, which were awaiting clearance.
“I tried to clear the goods on Thursday but couldn’t. They were scheduled for release on Sunday – but everything’s gone now,” he said.
Apparel Dominates Air Cargo
Officials from the International Air Express Association of Bangladesh said one-third of all air cargo involves the apparel and textile sector.
Over 60 international air courier services currently operate in the country, making the cargo village a critical artery in the export-import chain.
The BGMEA has begun collecting loss assessments from its members.
“We’ve emailed all our members, asking them to report what goods they had stored in air cargo,” said Mahmud Hasan Khan Babu, president of BGMEA.
⏳ Race Against Time
Exporters say that delays in receiving imported accessories and materials could lead to order cancellations, buyer penalties, or forced discounts.
Emran Ahmed, managing director of Zemtex Linkage Industries Ltd, said his imported lace accessories, crucial for a $162,000 shipment, were most likely burned.
“That shipment will probably be cancelled. I had already missed the export date on the 30th,” he said.
A Wider Economic Shock
With annual garment exports worth nearly $40 billion, even a fraction of disruption at the cargo village can send shockwaves through the economy. The incident underscores how vulnerable Bangladesh’s export engine is to infrastructure shocks.
Authorities have yet to provide a complete damage assessment or an official statement on the cause of the fire. But businesses warn that the real cost will not only be in goods lost — but in trust, time, and future orders.
