Airport cargo volumes drop 40% as export slowdown deepens

Airport cargo movement is often a reliable barometer of a country's manufacturing pulse. When factories hum, cargo bays fill up. When production slows, airport warehouses fall silent.

Bangladesh's airports are now telling a story of caution - not congestion.

Infograph: TBS

In April last year, Indian authorities cancelled the transshipment facility for Bangladeshi exporters through their airports, triggering alarm among exporters over higher costs and missed deadlines. The interim government responded quickly, opening cargo operations at Osmani International Airport and taking a Tk70 crore project to upgrade cargo services at Shah Amanat International Airport to ease pressure on the capital.

But nearly a year on, those facilities remain largely idle. Even at Hazrat Shahjalal International Airport (HSIA), utilisation is down by 30–40%, according to Biman Bangladesh Airlines.

Businesses insist the problem is not infrastructure, it is demand.

Exports during July–January FY26 totalled $28.41 billion, down 1.93% year-on-year, according to EPB. 

Fewer imports, fewer exports

Exporters are shipping fewer finished goods because they are importing fewer raw materials. Orders have slowed. Expansion plans are on hold. Factories are operating conservatively.

Exports have declined for six consecutive months. Imports have remained subdued as businesses adopted a wait-and-see approach during the interim government's 18-month tenure amid concerns over law and order and a fragile investment climate.

Freight forwarder Nasir Ahmed told TBS that cargo demand has been weak for five to six months.

"This has nothing to do with the fire that damaged the Dhaka airport's cargo village. If operations had been disrupted, we would have seen the impact. The real problem is lack of demand."

He added that even without the third terminal's cargo village, existing facilities are far from fully utilised.

Low demand has also dragged down freight rates. EU-bound air freight now costs $2.5–$3 per kg, he said. By contrast, data from Amsterdam-based air cargo analytics firm WorldACD showed spot rates at $4.87 per kg during the week of 29 July–4 August 2024.

Kabir Ahmed, president of the International Air Express Association of Bangladesh, quantified the contraction.

"Daily air cargo exports from Dhaka currently range between 500 and 600 tonnes. In a normal season, we would expect 800 to 900 tonnes. That's nearly a 40% decline."

He noted that most current shipments relate to earlier orders. "The impact of reduced garment orders appears after about six months."

Biman Bangladesh Airlines, the sole ground handler at HSIA, confirmed the slowdown.

ABM Nazmul Huda, General Manager (Cargo) of Biman Bangladesh Airlines, said: "Export cargo handling now stands at 600–700 tonnes per day, compared to 750–850 tonnes during normal periods. Meanwhile, the current import volume is around 600 tonnes per day."

He partly attributed the slowdown to the lean season and hoped for recovery in March–April.

Garment weakness drags on trade

According to the Export Promotion Bureau, exports during July–January FY26 totalled $28.41 billion, down 1.93% year-on-year.

Readymade garments—accounting for roughly 81% of the export basket last fiscal year—fell 2.43% during the period, offsetting moderate gains in engineering goods, leather products, jute items, frozen fish and home textiles.

With garments dominating air shipments, the slowdown has translated directly into softer cargo volumes.

According to the Export Promotion Bureau, exports during July–January FY26 stood at $28.41 billion, marking a 1.93% year-on-year decline.

Readymade garments that accounted for about 81% of Bangladesh's export basket last fiscal year fell 2.43% year-on-year during the period, dragging down overall performance despite moderate growth in engineering products, leather goods, jute items, frozen fish and home textiles.

A promising start, followed by a sudden halt at Sylhet

Cargo operations at Osmani International Airport began in late April last year after India's transshipment withdrawal triggered urgency. 

The first flight, operated by Gallistear Aviation, exported 60 tonnes of ready-made garments to Spain.

Over the next six months, 41 cargo flights transported around 2,350 tonnes of garments — all bound for Spain. But operations stopped abruptly in November, and no cargo flights have operated since.

Airport Director Md Hafiz Ahmed denied any operational shortcomings, saying the suspension reflected business decisions by operators.

"Sylhet airport is capable of handling export cargo according to international standards," he said, adding that confusion often arises between airport readiness and exporters' preparedness.

Agricultural exports: The missing piece

Local business leaders argue that Sylhet's cargo strategy was misaligned.

Falah Uddin Ali Ahmed, former senior vice-president of the Sylhet Chamber of Commerce and Industry, said the airport primarily handled garments, while the region's comparative advantage lies in agricultural produce.

"Exporting fruits and fresh items requires sanitary and phytosanitary certification," he said. "Those facilities were never established in Sylhet."

Bangladesh currently has only one government-approved packing house for such certification, located in Shyampur, Dhaka. Establishing a similar facility in Sylhet would cost Tk8–10 crore, according to airport sources.

Without SPS certification and inspection infrastructure, agricultural air exports remain stalled.

Chattogram: Plans without deadlines

The outlook at Shah Amanat International Airport is similarly sluggish.

Following India's transshipment decision, the Civil Aviation Authority of Bangladesh (CAAB) approved a Tk70 crore upgrade project, including two Explosive Detection System scanners, cold storage and a modern cargo shed. Nearly 10 months later, visible progress remains limited.

Airport spokesperson Ibrahim Hossain acknowledged the delay, saying there is currently no fixed deadline for cargo operations to begin.

Third Terminal: capacity without cargo

The delay in activating the third terminal's cargo village at HSIA remains a critical bottleneck.

After a fire damaged the existing cargo village, CAAB sought to shift operations to the newly built Terminal 3 facility. However, the contractor demanded payment of outstanding bills amounting to thousands of crores of taka and refused handover without settlement.

Airport Executive Director Ragib Samad said, "Some parts are still under a Dispute Board. Once the issues are resolved, the cargo village can be taken over and used."

Once operational, the third terminal is expected to raise annual export cargo capacity from 200,000 tonnes to 546,000 tonnes, including a 36,000-square-metre dedicated cargo zone.

Newly appointed Civil Aviation and Tourism Minister Afroza Khanam remains optimistic.

"Launching the third terminal is our top priority. We are in discussions with the relevant stakeholders to make this happen," she told TBS.

"Once cargo operations are also introduced there, things will become much easier. At the same time, we will pay attention to the development of other airports as well."

From surplus capacity to regional hub?

Aviation analyst and former Biman board member Kazi Wahidul Alam believes the third terminal could reposition Bangladesh as a regional transshipment hub.

"Once the cargo village at the Third Terminal becomes operational, annual handling capacity will more than double," he said. "The additional capacity could then be opened to neighbouring countries."

Such a move, he argued, would boost revenue and ensure better utilisation of expanded facilities.

For now, however, Bangladesh faces the opposite problem: expanding infrastructure in the face of shrinking demand.

The quiet cargo bays are not signalling logistical failure. They are reflecting a broader economic slowdown—one that no new terminal alone can reverse.