Political unrest in Bangladesh hampers logistics, causing widespread delays in trade and transportation.
The ongoing political unrest in Bangladesh has severely disrupted logistics across the country, with widespread impacts on cross-border trade, air cargo, and shipping operations. Curfews and commercial closures, particularly in the vital garment manufacturing sector, continue as the army attempts to restore order following recent violence and looting.
Judah Levine, Head of Research at Freightos, reports that cross-border and inland rail services remain suspended, further exacerbating the situation.
At the major Petrapole crossing between India and Bangladesh, trucking is halted, leading to a backlog of over 700 trucks on the Bangladesh side. While Dhaka Airport, the nation’s air cargo hub, briefly closed earlier in the week, flights have resumed, but a significant backlog of air cargo remains. The Port of Chittagong, a critical maritime hub, is operating well below capacity, with only a fraction of usual container volumes being processed.
Export ocean container rates have surged due to these disruptions, with rates to the U.S. and Europe rising sharply. The Apparel Export Promotion Council (AEPC) notes that many buyers are pulling orders from Bangladesh due to the instability, potentially redirecting some orders to India. However, India’s import policies may limit the extent of this shift. The Federation of Indian Export Organisations (FIEO) remains cautiously optimistic, expecting a return to normalcy within a week, though some sectors, like perishables, may suffer lasting impacts.
