Industry Updates

Bangladesh Strengthens Air Cargo Network

Bangladesh Strengthens Air Cargo Network as India Ends Transshipment Access

After India revoked the transshipment facility for Bangladeshi exports on April 8, Bangladesh swiftly launched alternative air cargo operations to protect its export-driven economy, especially the ready-made garment (RMG) sector, which makes up 81% of its exports. The ban disrupted routes through Delhi Airport, which previously handled 600 MT of weekly Bangladeshi garment cargo.

Citing congestion and diplomatic tensions, India ended the 2020 agreement. In response, Bangladesh’s Civil Aviation Authority fast-tracked cargo flights from Sylhet’s Osmani Airport (starting April 27) and planned similar upgrades in Chattogram.

Freight costs have since doubled. Bangladesh aims to stabilize logistics and reduce dependency, while India risks losing transshipment revenue. The shift signals a move toward a more autonomous export infrastructure for Bangladesh.

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