Bangladesh Export Freight Costs Triple as Mideast Conflict and Shipping Lines Squeeze Bookings

Dhaka, August 2, 2026 — Bangladesh's export sector is facing sharply higher ocean freight rates and reduced shipping bookings, driven by an escalating conflict between Iran and the US-Israel coalition that has choked shipping through the Strait of Hormuz, while shipping lines have simultaneously cut back on export container bookings from Bangladesh. 🚢 Industry insiders warn the crisis could erode Bangladesh's export competitiveness if it persists. 📉

📦 The crisis has hit exporters on two fronts: soaring freight rates and reduced booking availability. Representatives of importers, buying houses, shipping agents, and exporters report that even when bookings are accepted, lead times have increased by up to three weeks in some cases, while freight rates have more than doubled. 💰

📊 Freight Rate Surge: By the Numbers

📈 Khairul Alam Suzan, vice-president of the Bangladesh Freight Forwarders Association (BAFA), provided detailed rate comparisons:

• 🇸🇦 Middle East rates — jumped from $1,400-$1,500 to $5,000-$6,000 per container (tripled)
• 🇪🇺 Europe rates — climbed from $4,000-$5,000 to about $11,000 per container
• 🌍 Africa rates — up by an additional $3,000-$4,000
• 🇺🇸 USA rates — surged from $4,500 to more than $11,000-$11,400 per container

"Freight charges have doubled or even tripled. Demand for 40-foot export containers remains high, while many containers are stranded in the Middle East because of the conflict."

⚔️ Mideast Conflict: Dual Pressure Points

🌐 The Mideast conflict has created two pressure points for Bangladesh's shipping:

• 🇮🇷 Strait of Hormuz — Iran stopped two vessels trying to leave and turned back four tankers; US and Israel reportedly planning strikes on Iran's energy infrastructure
• 🇾🇪 Bab el-Mandeb Strait — Houthi forces in Yemen have begun threatening this route, the other passage out of the Red Sea

🚢 Shipping lines have rerouted vessels to avoid the Strait of Hormuz, adding to fuel and insurance costs. The major mainline operators (MLOs) serving Bangladesh include Maersk, MSC, CMA CGM, Hapag-Lloyd, COSCO, Evergreen Line, and OOCL. 📋

📦 Shipping Lines Cut Bangladesh Bookings

⚠️ Beyond the Mideast conflict, shipping companies have sharply reduced bookings for export containers from Bangladesh, creating fresh uncertainty for exporters and freight forwarders. Industry insiders allege that MLOs are deliberately creating an artificial shortage of container space to drive up freight rates. 📊

📧 One telling example: the Dhaka liaison office of US-based buying house Liang Fashion spent nearly two weeks trying to secure bookings for 10 garment-laden containers bound for the US. MSC informed the company by email:

"Sorry we are unable to accept your booking currently. Our vessels have been fully booked for the next few weeks."

🏭 MLO representatives, however, say the disruption is caused by shipping disruptions linked to tensions in the Middle East. They add that exceptionally strong demand from China is also leaving fewer booking slots for other countries, including Bangladesh. 🇨🇳

👕 Garment Exporters: FOB vs DDP Impact

📊 The crisis affects exporters differently depending on their shipping terms:

✅ FOB (Free on Board) Exporters — Partially Shielded

Mahmud Hasan Khan, president of BGMEA, said most garment exporters are insulated from the immediate impact since 90-95 percent of export orders are shipped on FOB terms:

"Under FOB contracts, exporters bear transportation costs only up to the port. Ocean freight, container charges and other international shipping costs are paid by overseas buyers."

⚠️ But he warned the effects would eventually reach exporters too: "When logistics costs increase, buyers usually reduce imports or place fewer orders." 📉

❌ DDP (Delivered Duty Paid) Exporters — Directly Hit

Shovon Islam, managing director of Sparrow Group, a leading garment exporter that ships under DDP terms, said:

"We are struggling to secure bookings for US-bound containers and are having to pay significantly higher freight rates. Delayed shipments damage reputation and increases the risk of losing future orders."

💰 DDP exporters bear freight costs until goods reach buyers' warehouses, making them directly vulnerable to the rate surge. Neither BGMEA nor BKMEA has data on how many Bangladeshi exporters use the DDP model. 📊

📦 Import Side: Smaller Impact

📊 On the import side, traders report a comparatively smaller 20-30 percent rise in freight rates. They attributed this partly to container-size dynamics — most inbound cargo moves in 20-foot containers, while exports mostly need 40-foot ones, which are running short during the disruption. 📦

🔮 Outlook: Air Freight and Competitiveness Concerns

⚠️ Industry insiders warn that if the situation continues, exporters may have to switch to air freight, driving up logistics costs further. Over time, the added burden could:

• 💸 Erode Bangladesh's competitiveness — prompting buyers to shift orders elsewhere
• ⏱️ Delay shipments — damaging reputation with international buyers
• 📦 Reduce order volumes — buyers may place fewer orders due to higher costs
• 🔄 Force sourcing shifts — smaller buyers who rely on spot bookings may switch to competing countries

🎯 Large international buyers are more insulated since they lock in freight rates through annual contracts with major shipping lines. However, smaller buyers who rely on spot bookings have to absorb the higher rates — and that could start affecting where they choose to source from. 🌐

📈 For Bangladesh's export economy, which relies on the Chattogram port for the bulk of its seaborne trade, the freight crisis underscores the vulnerability of being dependent on a single major port and limited shipping route options. Diversifying port infrastructure and exploring alternative shipping routes may become necessary if Mideast tensions persist. 🚢