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Monday, March 30, 2026

War is testing Bangladesh’s textile trade, and logistics may matter more than price

For Bangladesh’s garment exporters, the conflict around Suez and Hormuz is not a distant geopolitical event. It is a direct threat to delivery reliability, energy costs and buyer confidence.

Bangladesh’s textile and apparel industry is facing a fresh external shock as disruption around the Suez Canal and the Strait of Hormuz begins to affect freight, fuel and export flows. The industry’s exposure is unusually high: garments account for more than 80% of the country’s exports, while nearly 90% of its fuel imports come from the Middle East.

What is happening
Avoidance of the Suez route is lengthening voyages by up to two weeks, reducing effective shipping capacity and disrupting vessel schedules. At the same time, tensions around Hormuz are pushing up fuel, bunker and insurance costs. Early disruption is already visible: cargo operations by several Middle Eastern airlines have reportedly been suspended from Dhaka, stranding over 1,200 tonnes of export goods, while more than 1,000 containers remain stuck at ports.

Why it matters
Fashion supply chains run on seasonal precision. A delayed shipment is not merely inconvenient; it can mean markdowns, penalties or cancelled orders. In such an environment, logistics resilience becomes a competitive variable, not just an operational concern.

What must happen next
A coordinated national response: faster customs clearance, better port fluidity, stronger inland connectivity and temporary financial flexibility for exporters facing longer cash-conversion cycles. Manufacturers, meanwhile, need earlier production planning and more transparent buyer communication.

The broader point is clear. In a more volatile trading world, Bangladesh’s advantage will depend not only on low-cost production, but on being a reliable sourcing destination when global trade routes come under strain.

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