Dhaka Cargo Fire Could Cost Bangladesh Over $1 Billion, Experts Say

(DHAKA, BANGLADESH) A massive fire at Dhaka’s Hazrat Shahjalal International Airport’s cargo village has left Bangladesh facing more than $1 billion in damages, industry groups said, with immediate risks to exports and medicine supplies during the peak pre-Christmas shipping window. The blaze broke out on Saturday, October 18, 2025, in the cargo complex’s import section, where high-value goods move in and out daily for factories across the country. Exporters warn that the fallout will slow production, delay deliveries to global brands, and raise costs for weeks.

Officials confirmed at least 35 workers were injured. Flights were briefly suspended and cargo operations halted for hours as firefighters battled the blaze, which took about seven hours to control and 26 hours to fully extinguish. Investigations are underway to determine the cause, including probes into possible arson or sabotage, with reports due within 15 working days from committees formed by the Fire Service and Civil Defence Directorate and the Ministry of Civil Aviation and Tourism.

Financial and Sectoral Damage Estimates

Industry groups — the Exporters Association of Bangladesh (EAB), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the International Air Express Association — estimate losses above Tk 12,000 crore (more than $1 billion). They report the fire destroyed large stocks of:

• Imported raw materials
• Finished garments
• Pharmaceuticals
• Chemicals
• Product samples needed for buyer approvals

According to analysis by VisaVerge.com, the timing is particularly damaging because many buyers rely on Bangladesh for fast air shipments to restock before year-end sales.

Apparel industry exposure

Bangladesh’s apparel sector — the world’s second-largest after China — is the hardest hit.

• 200–250 factories depend daily on the airport cargo village for time-sensitive inputs and urgent exports.
• Major brands such as Walmart, H&M, and Gap often use air freight to rescue production lines or accelerate final deliveries.
• Lost imported fabric, trims, and accessories will force schedule changes, partial shipments, or costly reroutes through third countries.

Pharmaceutical impact

The pharmaceutical sector projects an economic hit of around Tk 4,000 crore due to destroyed raw materials and finished products. Losses include:

• Active pharmaceutical ingredients (APIs)
• Temperature-sensitive items
• High-value consignments for domestic and overseas buyers

Any supply gaps could affect hospital procurement timelines and availability of specialty drugs in the local market.

Product samples and order approvals

Exporters also flagged the loss of product samples ready for buyer approvals. Without these samples, firms risk delays in confirming new orders and participating in holiday replenishment programs—putting pressure on margins in a country heavily dependent on export-driven jobs and foreign exchange.

Government response and industry appeals

• BGMEA and EAB have urged the government to approve emergency support for affected firms.
• The National Board of Revenue is assessing damage reports.
• Exporters are documenting losses in hopes of compensation or temporary relief on duties and taxes tied to ruined consignments.

Industry leaders say quick help could prevent layoffs and protect Bangladesh’s standing with global buyers who depend on tight delivery windows.

Operational disruption and safety failures

The fire exposed significant weaknesses in airport safety and emergency planning. Firefighters cited mismanagement, poor coordination, and delayed repairs to firefighting vehicles that slowed the response and allowed flames to spread.

• The cargo village, a central hub for imports and exports, saw key operations shuttered for hours.
• Backlogs created by the shutdown will take days to clear.
• Authorities have not named a cause, but multiple probes are underway.

Committees formed by the Fire Service and Civil Defence and the Ministry of Civil Aviation and Tourism will deliver initial findings within 15 working days. Exporters demand the probe examine:

• Alarm systems
• Emergency access routes
• Storage practices for chemicals and hazardous materials

As shipments resume, freight forwarders plan to prioritize:

1. Medical cargo
2. High-value garment orders
3. Time-sensitive materials needed to restart production

Airlines and ground handlers will adjust schedules to handle rebooked freight. Some exporters are considering rerouting urgent consignments via regional gateways, acknowledging added cost and time.

This airport blaze was the third major fire in Bangladesh in the same week — following deadly fires at a garment factory and a chemical warehouse — highlighting ongoing gaps in industrial safety and enforcement.

Business groups say the airport fire should prompt a broader fix: better inspections, stronger storage rules, and monitoring of repair and maintenance protocols for emergency equipment.

Trade, travel, and immigration ripples

While passenger areas were not the center of the incident, travelers may face knock-on effects, especially those carrying samples, medical supplies, or business-critical goods.

• Temporary flight suspensions have ended, but cargo backlogs can ripple into passenger operations when airlines rebalance aircraft loads.
• Business travelers with delivery-linked meetings should build in extra time.
• Foreign buyers and quality teams may see factory visits shifted as suppliers sort inventories and reset production lines.
• Consular staff and trade officers may receive increased requests for business letters, rescheduling, and proof-of-delay documents for contract adjustments.
• Students and workers relying on couriered documents (academic records, employer letters, credential evaluations) could face delays if those items moved through the airport’s import section.

Practical advice for travelers and senders:

• Keep digital backups of important documents.
• Use trackable courier services.
• Carry original papers in hand luggage when traveling, and store copies securely online.

Immediate steps for exporters and importers

Exporters and importers can take the following actions now:

1. Create detailed inventories of lost or damaged goods, with airway bills, invoices, and photos.
2. Request written confirmations from airlines, ground handlers, and freight forwarders for claim files.
3. Prioritize reordering of critical raw materials and consider split shipments to reduce risk.
4. Communicate early with buyers about revised timelines and partial delivery options.

The Civil Aviation Authority of Bangladesh said operations have resumed: https://caab.gov.bd. Shippers should check carrier notices and ground handler updates daily this week, as slot allocations and screening queues may change quickly.

Insurance, customs, and legal considerations

• Insurers will play a central role in recovery; policyholders should review coverage for fire, storage, and transit risks and file claims promptly.
• For consignments in bonded areas, firms should seek customs guidance on duty treatment for destroyed cargo.
• Trade lawyers advise keeping a full paper trail for any contract renegotiations tied to delivery delays.

Key takeaways and longer-term needs

Bangladesh’s export economy relies on reliable air cargo during peak periods. This fire — with losses above $1 billion — underscores urgent needs for:

• Stronger fire suppression systems
• Well-maintained rapid-response equipment
• Trained staff able to coordinate across agencies under pressure
• Broader inspections and enforcement across warehouses and industrial zones

As investigative committees prepare reports, factory owners and workers will be watching for concrete fixes — not only at the airport, but across the supply chain and facilities that face similar risks.