India Halts Transhipment Access for Bangladeshi Exports, Pressuring Dhaka Airfreight Market

11 Avr India Halts Transhipment Access for Bangladeshi Exports, Pressuring Dhaka Airfreight Market

Airfreight rates out of Bangladesh are expected to surge following India’s decision to revoke transhipment access for Bangladeshi exports. In a statement released Tuesday, India’s Ministry of Finance confirmed that it has withdrawn access through Indian ports and airports for Bangladesh export cargo destined for third countries via land customs stations.

This sudden policy reversal is poised to put immense pressure on Bangladesh’s already strained export logistics, especially as capacity constraints are likely to emerge.

“If airlines cannot increase capacity from Bangladesh, the impact will be very bad,” a Dhaka-based forwarder said. “We expect to see airfreight rates spike and increased demand for ad-hoc charter services.”

The timing of India’s decision adds another layer of complication to Bangladesh’s garment industry, which has been grappling with an unstable political climate and recurring strikes at Chittagong Port, the country’s main container gateway. Many view this move by India as a strategic attempt to support its own garment sector by curbing Bangladesh’s global logistics advantages.

However, forwarders believe that while short-term export volumes may temporarily shift to India, Bangladesh’s expertise and lower labor costs will remain a long-term competitive edge.

“They [India] may win a short-term share, but they can’t match Bangladesh’s deep experience and labor cost structure,” the forwarder added.

At the same time, this disruption could open new doors for Chine, which already provides transhipment services via Nanjing Lukou International Airport. According to the forwarder, China may see this as an opportunity to position itself as a more stable transhipment partner for Bangladeshi exports, especially during high-demand periods.

What This Means for Shippers:

• Expect higher airfreight rates from Dhaka in the near term.
• Airlines may seek to capitalize on reduced transhipment options, tightening available capacity.
• Ad-hoc charter rates are likely to climb, and capacity should be secured in advance where possible.
• Alternative routing options via China may become more prominent.

We are closely monitoring the situation and working with our partners to help secure capacity and offer routing solutions where available. Please contact us if you have shipments affected by these developments.