The escalating West Asia crisis, triggered by the Iran conflict, has sent shockwaves through the global shipping sector, creating a severe container shortage and soaring freight costs that are now critically disrupting Bangladesh's import-export operations.
With the Strait of Hormuz effectively closed to commercial traffic, vessels have been forced to reroute via longer, costlier alternatives.
This has triggered a domino effect: freight rates have surged by 20 to 40 per cent, container availability has plummeted, and lead times have stretched dramatically.
The result is a sector-wide turmoil affecting everything from perishable food exports to petrochemical imports.
Mounting pressures on supply chains
Traders report that essential raw materials are stranded at trans-shipment hubs due to container shortages, while export consignments face delays owing to vessel scarcity. The disruption is particularly acute for export-oriented industries dealing in perishable goods, processed foods, and chemicals, as well as import-dependent sectors reliant on petrochemical-based inputs.
"Container rents have increased significantly due to the Middle East crisis," said Tanzir Helal, Chief Supply Chain Officer at PRAN-RFL, Bangladesh's largest industrial group. "Previously, it cost $900 to bring a container from Thailand and $600 from Singapore. Now, the rent has increased threefold. The rent is rising due to the decrease in container availability."
Helal highlighted a critical bottleneck: vessels that entered the region before the conflict became trapped, unable to depart once the Strait of Hormuz closed. "This has created a container crisis in exporting countries," he explained.
Lead times have also deteriorated sharply. "It used to take an average of 50 days for a ship from Europe or the United States to arrive in our country. Now, ships are not arriving even in 70 days," Helal noted. "Due to the decrease in container flow, products imported into Bangladesh are getting stuck at trans-shipment ports. Where it used to take 10 days, now it takes 20. We are facing huge losses on all fronts."
Rising costs across key routes
Abu Sufian Chowdhury, Managing Director of Chattogram-based Modern Poly Industries Limited, confirmed the steep cost escalation. "Earlier, it cost $750 to bring petrochemical materials from the Middle East, but now it costs $1,000. Containers that used to cost $1,100 from China now cost $1,450. And not everyone can easily secure a container."
For agro-processors, the situation is compounded by new risk-related surcharges.
Syed Md Shoaib Hasan, owner of Hifs Agro and General Secretary of the Bangladesh Agro Processors Association (BAPA), shared: "Ten containers of export products from my own company are on the way. Although I know the location of six containers, I am not sure where the remaining four are."
He added that shipping lines are now imposing a risk assessment fee of $3,000 per container for shipments to Dubai. "Some containers will reach Dubai by road from Colombo via Jeddah Port. For this, they are demanding an additional $1,500. This has increased the cost by $3 per carton."
Chemical and fresh food exports hit hard
Smart Group of Industries, a major Chattogram-based exporter of chemicals to markets including Vietnam and Indonesia, is grappling with vessel shortages. Captain Mainul Ahsan, the group's Executive Director, stated: "The Middle East war has had a negative impact on the shipping sector around the world. Sufficient containers are not available on international routes. Due to this, we are having to expedite the export of chemical products. Ships are not available on time to the countries where our chemicals go."
He noted that the main shipping lines have introduced additional bunker surcharges, raising freight costs by an average of 20 per cent. "Even then, the required schedule is not being met. Many products exported to the Middle East have been returned to our depots because they were not shipped. Especially, food exporters have suffered a lot."
The fresh produce sector faces even steeper challenges.
Mahbub Rana, President of the Chattogram Fresh Foods and Vegetable Exporters Association, reported: "The export of frozen and fresh foods is being disrupted due to the Iran war. Earlier, we used to send products to Dubai, Sharjah and Jeddah through air freight. About 25 tons of products were exported every day. Now, due to the Middle East crisis, flights have been cancelled, reducing export revenue by more than $25,000 per day."
With air cargo suspended, sea freight has not offered relief. "Regularly required ships are not available. Shipping costs per container on Middle East routes have increased from $2,500 to more than $8,000," Rana said.
Energy sector and LPG imports affected
The country's LPG sector is also feeling the strain. Sheikh Samidul Islam, CEO of Seawave Marine Service, a key shipping agent for LPG imports, explained: "Due to the Iran war, ships are not available on Middle East-centric routes. The fares for bringing petroleum products, including LPG and LNG, have increased. Again, due to the closure of the Strait of Hormuz, the fares of ships coming from America are even higher due to the longer distance. Due to the increase in fuel prices, there is a shortage in the shipping sector. Stability has not yet been established."
Industry perspectives on freight surcharges
Shahed Sarwar, Director of the Bangladesh Shipping Agents Association, provided context on the mechanics behind rising costs. "When fuel prices increase internationally, the main lines add a charge called the bunkering adjustment factor or fuel surcharge. This has been happening for a long time. After the shipping lines set the base fare, each line imposes such charges according to its policy to adjust for fuel price increases. When fuel prices decrease, they adjust the additional charge accordingly."
He further noted that freight rates have also risen to account for the longer distances involved in rerouting goods via alternative corridors.
Outlook and calls for mitigation
Industry leaders are urging government intervention and greater coordination with international shipping alliances to mitigate the crisis. With container repositioning disrupted, port congestion worsening, and geopolitical uncertainty persisting, stakeholders warn that without swift corrective measures, Bangladesh's trade competitiveness and foreign exchange earnings could face prolonged pressure.
As the global shipping network adjusts to a new reality shaped by regional conflict, Bangladeshi businesses are left navigating a volatile landscape where predictability has given way to premium-priced uncertainty.
The coming weeks will be critical in determining whether adaptive strategies and diplomatic engagement can restore a measure of stability to the nation's vital trade arteries.