Bangladesh Airport Fire Sparks $1bn Export Losses, Garment Industry in Crisis

bangladesh airport fire bangladesh garment industry

The Bangladeshi garment industry, the backbone of the nation’s export economy, is reeling after a massive fire tore through the cargo complex at Dhaka’s Hazrat Shahjalal International Airport. The inferno, which erupted on Saturday afternoon, gutted vast quantities of apparel, raw materials, and product samples, leaving exporters facing what could amount to $1 billion in losses. The timing of the disaster—coinciding with the peak export season—has amplified the damage, threatening the stability of a sector that employs millions and fuels Bangladesh’s global trade identity.

According to airport officials, the blaze originated in the cargo import area, spreading rapidly across several storage facilities packed with finished garments and essential fabrics. Despite the immediate response from multiple fire units, the flames proved difficult to contain for several hours. Plumes of black smoke engulfed the airport skyline, and operations in the cargo division were brought to a complete halt.

Authorities are yet to confirm the exact cause of the fire, but early reports suggest a possible short circuit or electrical malfunction inside one of the storage units. Eyewitnesses described scenes of chaos as workers and airport staff scrambled to salvage goods, but the intensity of the flames made rescue efforts nearly impossible. By the time the fire was brought under control, vast sections of the warehouse complex had been reduced to ashes.


Exporters Face Unprecedented Losses

Industry leaders from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said initial estimates put the financial losses at roughly $1 billion. They warned that the figure could climb higher once full assessments are completed.

“Thousands of cartons containing export consignments for leading global brands have been destroyed,” said BGMEA President Faruque Hassan. “Some exporters have lost months of work. This will delay deliveries and affect our international commitments significantly.”

The garment sector accounts for more than 80% of Bangladesh’s export earnings, with major shipments bound for markets in Europe, the United States, and Asia. The fire’s ripple effect is expected to disrupt supply chains, delay shipments, and dent buyer confidence at a time when the industry is striving to recover from global trade challenges.


Disruption to Global Supply Chains

Trade experts warn that the impact may extend beyond Bangladesh’s borders. “This fire couldn’t have occurred at a worse time,” said economist Nazneen Ahmed. “The global apparel supply chain is already under strain due to shipping delays and rising transport costs. The loss of inventory and infrastructure at Dhaka airport will create severe bottlenecks.”

Exporters fear potential penalties for delayed shipments from international buyers and loss of orders to competitors in Vietnam or India. Several logistics companies operating at the airport are seeking emergency clearance to move remaining goods to alternative warehouses to resume shipments as soon as possible.

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Government and Airport Response

Prime Minister Sheikh Hasina has ordered a full investigation into the incident and instructed authorities to assess damages swiftly. The Civil Aviation Authority of Bangladesh (CAAB) confirmed that flight operations in passenger terminals remained unaffected, but all cargo handling activities were temporarily suspended.

“The government is taking immediate steps to provide relief and ensure exporters can recover their documentation and pending consignments,” said State Minister for Civil Aviation Md Mahbub Ali in a press briefing. “We will also review the airport’s fire safety and emergency response procedures to prevent such disasters in the future.”

Fire Service and Civil Defence officials reported that at least 25 fire engines were deployed and took nearly six hours to control the blaze completely. No fatalities have been reported so far, although several firefighters sustained injuries during operations.


A Critical Blow to Bangladesh’s Export Reputation

Bangladesh’s garment industry has long been praised for its ability to recover from adversity, including supply disruptions, factory fires, and the pandemic’s economic slowdown. However, this incident is being viewed as a major setback just as the country was gearing up to meet record export targets for 2025.

Retail analysts note that the timing—ahead of the Western holiday season—could amplify the effects on international retailers depending on Bangladeshi suppliers. “A single week’s delay translates into millions in missed sales for global apparel brands,” said retail consultant Shubho Saha. “It also raises concerns about warehouse safety and risk management in the global apparel sector.”


Rebuilding Confidence

While damage assessments continue, the BGMEA and government have pledged coordinated efforts to help affected manufacturers recover their losses. Discussions are underway to secure insurance claims and provide temporary financial assistance for exporters hit hardest by the fire.

Industry experts stress that beyond compensation, restoring international trust will be essential. Implementing stronger cargo safety protocols, modern fire suppression systems, and tighter logistics oversight are being recommended as immediate priorities.

For now, the image of charred warehouses and smoldering garment boxes stands as a painful reminder of the vulnerabilities in Bangladesh’s export infrastructure. As exporters count their losses, the challenge lies not only in recovering from financial damage but also in reaffirming Bangladesh’s position as a reliable partner in global trade.


According to a report by Al Jazeera, the fire at Dhaka’s Hazrat Shahjalal International Airport caused extensive damage, with garment exporters fearing losses of up to $1 billion during the critical export season. For more detailed coverage of the incident and its impact on Bangladesh’s garment industry, visit the full report on Al Jazeera here.

For more global news updates, including ongoing coverage of international trade and economic developments, visit our World News section at SBKiNews here.

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