War may raise logistic costs DCCI
The ready-made garment (RMG) sector, the country’s main foreign exchange earner of the country may face higher logistics costs, supply chain disruptions and increased shipping risks due to the ongoing US–Israel conflict with Iran, the Dhaka Chamber of Commerce & Industry (DCCI) warned on Wednesday.
In a statement, the chamber said the rising geopolitical tension is already unsettling global energy markets, trade routes and financial systems.
The government to take proactive policy steps to protect the economy amid rising geopolitical tensions involving the US, Israel and Iran.
As an economy heavily dependent on imports, Bangladesh remains highly exposed to such external shocks.
Global oil prices recently climbed above $100 per barrel before easing to below $90 amid supply concerns linked to instability in the Middle East.
According to DCCI estimates, every $10 rise in international oil prices could add around $70–80 million to Bangladesh’s monthly import bill, further widening the country’s trade deficit.
The conflict has also affected key maritime routes, particularly the Strait of Hormuz, through which nearly one-fifth of the world’s oil and gas supply passes.
Continued disruptions there could sharply raise freight charges, insurance costs and delivery times for Bangladeshi imports and exports.
At home, export performance has been weakening, with shipments declining for seven consecutive months due to political and economic pressures.
Although more than 10 vessels carrying LNG, LPG, diesel and other fuel supplies have recently arrived at Chattogram Port, providing temporary relief, the chamber cautioned that the situation remains uncertain.
If tensions escalate further, DCCI warned Bangladesh could face broader macroeconomic pressures, including higher electricity generation costs, inflation fueled by rising transport expenses and possible disruptions in remittance inflows from the Middle East.
To reduce potential impacts, the chamber recommended building strategic fuel reserves, diversifying energy import sources and strengthening coordination between financial institutions and the business community.
