India Revokes Transshipment Access: Challenges for Bangladesh's Exports

India Revokes Transshipment Access: Logistical Challenges for Bangladesh

News: India’s April 2025 cancellation of Bangladesh’s 2020 transshipment privilege has sharply raised Bangladeshi export costs and strained supply chains.

Reliance on costlier, congested Chittagong Port and Dhaka airport has lifted logistics bills for the $50 bn RMG sector by 15‑20% and caused 2‑3‑day delays, eroding competitiveness versus Vietnam and Cambodia.

Dhaka’s strategic responses include accelerating Payra and Matarbari deep‑sea ports, assessing China‑Myanmar and BCIM corridors, and rerouting via Colombo or Gulf air hubs, though each carries cost, delay, or political risk.

Regionally, Bangladesh’s leverage in SAARC/BIMSTEC has weakened while Indian textile firms and logistics operators redeploy freed capacity.

Professionals should renegotiate contracts, invest in automation, diversify routes, pursue PPPs, and hedge geopolitically to sustain growth. Monitor WTO rulings and target new markets.