News / Cargo piles up as vital Bangladesh-Middle East trade is halted

© Alina Vytiuk

Bangladeshi exporters are facing mounting disruption to trade with the Middle East after Iran closed the Strait of Hormuz, leaving more than a thousand containers stranded and prompting carriers to halt new bookings. 

Garment and processed food exporters are among the most affected, with shipments bound for the Gulf stuck at Chittagong port, inland container depots, and regional gateways, according to industry estimates. 

Bangladesh trades with seven Middle Eastern countries via the strait: Iran; Iraq; Qatar; Kuwait; Bahrain; the UAE; and Saudi Arabia. Last year, bilateral trade reached $6.75bn. 

But businesses say uncertainty over how long this latest conflict will last has paralysed cargo flows. 

Local conglomerate Pran-RFL Group said hundreds of its export shipments were caught up in the disruption. 

Marketing director Kamruzzaman Kamal said around 600 export containers were stuck at various Middle East ports, awaiting delivery, while other shipments remained on vessels, unable to be discharged. 

The company, which exports goods worth about $180m a year to the region, is also struggling to secure raw materials, particularly petrochemicals, normally sourced from Gulf suppliers. 

Bangladesh exports apparel, processed foods, vegetables, fruit, frozen fish, caps, and footwear to Middle Eastern markets. In fiscal year 2024-25, exports to the region generated about $750m, while imports, largely LNG and petroleum products, reached $6bn. 

According to Ruhul Amin Sikder, secretary general of the Bangladesh Inland Container Depot Association, depots are already filling with cargo waiting for ships. 

“Depots have about 500 teu of containers bound for the Middle East,” he told The Loadstar. “Many of these boxes have been waiting for days, since the war broke out.” 

The disruption is also hitting seafood exporters. Mohammad Shahjahan Chowdhury, president of the Bangladesh Frozen Food Exporters Association, said around 100 containers of frozen fish were stuck at factories and ports, awaiting shipment. 

Several carriers have suspended bookings from Chittagong to Gulf destinations, following the closure of the strait. Muntasir Rubayat, head of operations at GBX Logistics, local agent for Hapag-Lloyd, said lines were already beginning to impose additional charges. 

“Many may increase rates due to the impact of the Hormuz closure, although it has not yet been formally declared.” 

Shipping lines have also begun imposing war-risk surcharges of $2,000–$4,000 per container for cargo moving through high-risk areas, such as the Gulf, Red Sea, and Strait of Hormuz, which will significantly increase transport costs. 

Mr Rubayat warned the conflict could also push up freight rates more broadly, adding: “The war is causing oil prices to rise, so freight rates will shoot up soon.”

The crisis is also creating financial uncertainty for exporters. 

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said the conflict was delaying payments for shipments already delivered, and shipments to Dubai had, effectively, been suspended. 

Meanwhile, the disruption to imports through the Strait of Hormuz could also affect Bangladesh’s energy supply. T

he country is heavily reliant on Gulf producers for LNG, raising concerns that prolonged disruption could trigger gas shortages and factory production slowdowns.