Bangladesh Airport Cargo Fire Threatens $1 Billion Loss to Garment Industry During Peak Export Season

Authorities are still investigating the cause of the devastating fire, with no determination made yet.

Bangladesh's garment export industry is anticipating losses reaching up to USD 1 billion following a catastrophic fire that destroyed the cargo complex at Hazrat Shahjalal International Airport in Dhaka, according to Al Jazeera reports. The disaster struck during the peak export season, creating significant disruption.

The fire, which broke out on Saturday in the airport's cargo import section, consumed substantial quantities of imported raw materials, finished garment products, and crucial product samples needed for business operations.

Faisal Samad, a director at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), described the aftermath as "a devastating sight," noting that "the entire import section has been reduced to ashes." He warned that financial damages could reach the USD 1 billion mark.

Even on Sunday, smoke continued to rise from the damaged site as firefighters and airport officials assessed the extensive destruction.

The fire destroyed urgent shipments and vital samples that manufacturers use to secure new business relationships.

Inamul Haq Khan, senior vice-president of BGMEA, emphasized the importance of these samples, stating they are "essential to attracting new buyers and increasing orders." He expressed concern that their loss "could seriously impact our future prospects."

The cargo facility represents one of Bangladesh's critical logistics centers, processing over 600 metric tonnes of dry cargo daily, a figure that typically doubles during the October-December peak season.

Khan highlighted the scale of disruption, noting that "each day, roughly 200 to 250 factories rely on air freight from this facility," adding that "the financial impact is enormous given the scale."

This incident marks the third major fire in Bangladesh within a single week.

Earlier on Tuesday, a fire at a garment factory and adjacent chemical warehouse in Dhaka resulted in at least 16 fatalities. Two days later on Thursday, another blaze engulfed a seven-story garment factory located in Chittagong's export processing zone.

Government officials have committed to thorough investigations of each incident, with warnings that if evidence of sabotage or arson is discovered, authorities will respond "swiftly and decisively."

Bangladesh holds the position of the world's second-largest apparel exporter after China. The industry employs approximately four million people and contributes more than 10 percent of the country's GDP, supplying major global brands including Walmart, H&M, and Gap.

Industry leaders have expressed concerns that the fire will cause substantial shipping delays and further complicate efforts to meet strict international delivery deadlines that global retailers demand.