Bangladesh’s export-oriented industries are facing mounting pressure as global and domestic supply chain disruptions intensify due to the ongoing conflict involving the United States, Israel, and Iran. The situation has triggered an energy crisis that is raising the cost of doing business and creating fresh concerns among manufacturers and exporters.
The conflict has significantly disrupted energy shipments through the Strait of Hormuz, one of the world’s most crucial transit routes for oil and liquefied natural gas (LNG). The disruption has caused volatility in global energy markets, pushing up fuel prices and affecting import-dependent economies such as Bangladesh.
Industry insiders say rising fuel costs are increasing electricity generation expenses and factory operating costs, forcing businesses to spend more on production and logistics. Export-oriented sectors including textiles, steel, ceramics, and light engineering are particularly vulnerable because they depend heavily on reliable and affordable energy supplies to maintain production schedules.
Bangladesh imports most of its energy needs and has already begun rationing fuel while purchasing LNG from the spot market at significantly higher prices following supply disruptions in the Middle East. Business leaders warn that the crisis may also affect global shipping and trade routes, increasing freight charges and causing delays in export shipments.
Garment exporters fear that production interruptions and higher energy costs could make it difficult to meet strict delivery deadlines set by international buyers. Policy analysts have cautioned that if the conflict continues, Bangladesh may face higher import bills, mounting inflationary pressures, and reduced competitiveness in global markets.
Industry representatives have urged the government to ensure stable energy supplies and adopt contingency measures to protect export industries and sustain economic growth. Experts have also recommended diversifying energy sources and strengthening supply chain resilience to mitigate the long-term economic impact of geopolitical tensions in the Middle East.
Despite the challenges, stakeholders remain hopeful that diplomatic efforts will help stabilise the region and global energy markets, eventually restoring normal trade flows and easing pressure on businesses in Bangladesh.
Bangladesh Garment Manufacturers and Exporters Association Director Faisal Samad said one of his shipments was delayed at Chattogram Port because trucks were unable to refuel with diesel at petrol stations. He noted that the ongoing conflict is affecting the entire supply chain.
Bangladesh Ceramic Manufacturers and Exporters Association President Moynul Islam said demand for ceramic products has recently declined due to uncertainty in global markets. “We are also facing problems delivering products because of a shortage of transport vehicles,” he said.
Meanwhile, Kamruzzaman Kamal, marketing director of PRAN-RFL Group, said the company operates around 3,500 trucks to transport its products. However, fuel shortages have forced about 20 percent of the fleet to remain idle.
“We have been asked to collect fuel from filling stations by taking serial numbers, but it takes almost half a day to refuel, and fuel is unavailable at many pumps,” Kamal said, warning that prolonged shortages could disrupt product supply in the market.
The crisis has also affected air cargo operations. Civil Aviation Authority of Bangladesh official Md Mukeet-ul-Alam Miah said many export products are shipped through passenger flights, but the number of such flights has decreased due to the conflict. As a result, about 20 percent more cargo flights have been added to transport export goods.
Perishable items such as vegetables, fish, and baked foods are usually exported through air freight from Shah Amanat International Airport in Chattogram. However, the crisis has created major challenges for exporters.
Airport spokesperson Engineer Ibrahim Khalil said around 100 flights have been cancelled due to the conflict, although operations to destinations other than Doha and Abu Dhabi are gradually resuming. Exporters are currently avoiding cargo shipments without confirmed flights.
Chattogram Fresh Foods and Vegetable Exporters Association President Mahbub Rana said vegetables worth nearly $200,000 were damaged because exports were disrupted after the conflict began on February 28. Many shipments were intended for markets including Saudi Arabia, Qatar, Oman, and Kuwait.
He warned that the disruption could affect the entire supply chain, including farmers engaged in contract farming who supply high-quality produce for export.
Similarly, Bangladesh Frozen Foods Exporters Association Vice President Dodul Kumar Dutta said shipments of frozen foods, particularly fish, have become difficult as some shipping lines have stopped accepting cargo while others have increased freight charges by $500 to $700 per container for destinations in Europe and America.
The rising costs are also affecting factory operations. Dutta said exporters are struggling to pay salaries and bonuses to workers ahead of Eid-ul-Fitr.
Logistics costs have also increased sharply. Bangladesh Covered Van-Truck-Prime Mover Goods Transportation Owners Association President Zafar Ahmed said vehicles carrying 20–21 tonnes of goods are now charging Tk26,000 to Tk27,000, up from the usual Tk18,000 to Tk20,000, due to higher fuel prices and increased demand ahead of Eid.
Despite these challenges, trade experts say the overall impact on containerized trade with the Middle East remains limited. Bangladesh Inland Container Depot Association Secretary General Ruhul Amin Sikder noted that container trade with Middle Eastern countries accounts for only 1–2 percent of Bangladesh’s total volume and has not significantly disrupted off-dock operations.
However, analysts warn that the continued rise in global fuel prices could push up the cost of essential commodities and further strain Bangladesh’s export competitiveness if the geopolitical tensions persist.
News Source: Daily Sun.
