A devastating fire that broke out at Hazrat Shahjalal International Airport (HSIA) in Dhaka on Saturday has caused massive disruption to Bangladesh’s export operations, with experts warning that total losses could exceed US $1 billion.
The blaze erupted in the import-cargo section of the airport’s cargo village on October 18. It quickly spread through storage facilities containing raw materials, finished garments, electronics, pharmaceuticals, and other goods awaiting export. Firefighters battled the flames for several hours before bringing the situation under control. The incident temporarily halted flight operations and forced authorities to divert several cargo and passenger flights to other airports.
Initial reports from The News International, Reuters, and Al Jazeera indicate that large volumes of export-bound apparel and accessories were destroyed, dealing a severe blow to Bangladesh’s textile sector, which accounts for roughly 85 percent of the country’s export earnings. The fire also affected pharmaceutical, telecom, and electronics consignments, potentially disrupting supply chains across multiple sectors.
Industry associations, such as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), estimate that the combined losses, including destroyed inventory, delayed shipments, cancelled export orders, and reputational damage, could exceed $1 billion. Experts warn that the timing of the disaster, just before the peak export season, may compound the financial fallout as buyers could redirect orders to other sourcing countries.
Authorities have launched an investigation into the cause of the fire, with officials not ruling out sabotage or negligence. The Civil Aviation Authority of Bangladesh (CAAB) has pledged a comprehensive probe and promised to review fire-safety protocols at all airport cargo facilities.
Exporters are urging the government to expedite insurance claims, introduce immediate relief for affected businesses, and overhaul cargo-village infrastructure to prevent future disasters. Analysts argue that the incident highlights long-standing weaknesses in Bangladesh’s logistics and risk-management systems, including insufficient fire-safety equipment, limited insurance coverage, and outdated warehouse design.
As operations gradually resume at HSIA, experts caution that the wider economic implications could persist for months. Delayed deliveries, loss of buyer confidence, and potential contract penalties may affect Bangladesh’s reputation as a reliable sourcing destination. Despite swift firefighting efforts, the country’s largest export hub now faces one of its worst logistical crises in years.
Source:
- https://www.thenews.com.pk/latest/1352291-bangladesh-airport-blaze-may-cause-1-billion-in-losses-say-experts
- https://www.reuters.com/world/asia-pacific/fire-airport-cargo-complex-disrupts-bangladeshs-garment-exports-2025-10-19
- https://www.dhakatribune.com/business/394463/airport-blaze-fuels-export-losses-deepens
- https://www.aljazeera.com/news/2025/10/19/bangladesh-garment-exporters-fear-1bn-losses-after-huge-airport-fire
The Exporters Association of Bangladesh (EAB) estimates the losses could exceed $1 billion, or Tk12,000 crore.





