A massive fire at Hazrat Shahjalal International Airport in Dhaka has gutted cargo terminals, threatening Bangladesh’s garment exports during peak season. The blaze, which broke out on Saturday, destroyed storage areas filled with raw materials, apparel, and product samples. Industry leaders warn losses may exceed $1bn, raising concerns about shipment delays and missed international contracts.
The catastrophe strikes at the heart of Bangladesh’s economy. As the world’s second-largest garment exporter, the country supplies major brands including Walmart, H&M, and Gap. With four million workers dependent on the sector, the fire’s fallout risks not only immediate financial losses but also long-term reputational damage if global buyers turn to competitors.
Scale of the Destruction and Economic Impact
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has described the fire as one of the worst logistics setbacks in recent years. “The entire import section has been reduced to ashes,” said Faisal Samad, BGMEA director.
Industry officials estimate that more than 200 factories ship products through Dhaka airport daily. The affected cargo village handled over 600 metric tons of goods each day, with volumes doubling during the October to December peak export season. Losing access to this hub at such a critical time threatens contractual obligations with overseas buyers.
Key concerns include:
- Destroyed product samples: These are vital for securing future orders. Losing them jeopardizes negotiations with new clients.
- Raw material shortages: Factories depending on imported fabrics and trims now face production bottlenecks.
- Missed delivery deadlines: Exporters risk penalties and cancelled orders, especially from fast-fashion retailers operating on tight schedules.
The garment sector contributes more than 10 percent to Bangladesh’s GDP, generating $47bn in annual revenue. A disruption of this magnitude could shave off hundreds of millions from quarterly earnings, with ripple effects across employment, foreign exchange reserves, and government revenue.
A Week of Fires Raises Alarm Over Safety
The airport blaze marks the third major fire in Bangladesh within one week. On Tuesday, a garment factory and chemical warehouse fire in Dhaka killed at least 16 people. Just two days later, another blaze destroyed a seven-storey garment factory in Chittagong’s export processing zone.
Such incidents highlight persistent safety issues in Bangladesh’s industrial sector. While significant reforms followed the 2013 Rana Plaza tragedy, enforcement gaps remain. The government has promised swift investigation, warning that sabotage or arson will be met with “resolute response.”
This string of fires is prompting exporters, insurers, and foreign buyers to question the resilience of Bangladesh’s logistics and industrial safety infrastructure. Without stronger safeguards, international retailers may divert orders to competitors in Vietnam, India, or Cambodia.
Table: Key Facts About the Dhaka Airport Fire
| Category | Details |
|---|---|
| Date of Incident | October 18, 2025 |
| Location | Hazrat Shahjalal International Airport, Dhaka |
| Facility Affected | Cargo Import Terminal (Cargo Village) |
| Estimated Loss | $1bn (garments, raw materials, samples) |
| Daily Cargo Volume | 600 metric tons (1,200+ during peak season) |
| Factories Using Facility | 200–250 daily |
| Sector Impacted | Garments ($47bn annual export industry) |
| Employment Affected | 4 million workers depend on sector |
| Global Buyers at Risk | Walmart, H&M, Gap, among others |
| Current Status | Fire contained; investigation ongoing |
Government Response and Industry Outlook
Authorities have suspended flights temporarily, redirected some cargo, and begun damage assessments. Firefighters confirmed that the blaze is under control, though smoke continued to rise the following day.
The Ministry of Commerce has pledged support to exporters, including emergency relief measures and talks with global buyers to prevent order cancellations. However, rebuilding storage capacity and restoring trust will take weeks, if not months.
Industry leaders emphasize the need for:
- Improved fire safety infrastructure at logistics hubs.
- Insurance reform to ensure faster compensation for exporters.
- Diversified logistics options, including increased use of Chittagong and Sylhet airports.
- Digital tracking systems to protect product sample data and mitigate losses in case of disasters.
Bangladesh’s garment sector has proven resilient in past crises, from political unrest to supply chain disruptions during the pandemic. Yet this incident underlines structural vulnerabilities that could erode its competitive edge.
Trending FAQs
What caused the fire at Dhaka airport?
The cause is not yet known. Authorities have launched an investigation and are exploring both accidental and deliberate factors.
How much is the estimated loss?
Industry leaders estimate losses of up to $1bn, mostly from destroyed garments, raw materials, and product samples.
Which companies are affected?
Major global retailers such as Walmart, H&M, and Gap source heavily from Bangladesh. Many of their supplier shipments have been delayed.
How important is the garment sector to Bangladesh?
It is the country’s economic backbone, generating $47bn annually and employing about four million workers.
What happens next?
The government has promised to strengthen safety measures, compensate exporters, and prevent further disruption. Exporters are now focusing on damage control and ensuring global buyers remain committed to Bangladesh.
The Dhaka airport fire is more than a logistics setback. It is a wake-up call for Bangladesh’s export-driven economy. With billions at stake, restoring confidence in safety, efficiency, and reliability will be crucial to safeguarding the nation’s role as a global garment powerhouse.
