A surge in air cargo rates following the Israel-U.S. conflict with Iran is affecting Bangladeshi vegetable exporters, increasing costs and affecting competitiveness in key markets.
Exporters rely on Biman Bangladesh Airlines to ship vegetables to destinations such as Dubai, Qatar, and Saudi Arabia. The carrier has suspended flights on these routes, while other airlines, including Air Arabia, flydubai, and Saudia, continue limited operations. US-Bangla Airlines is operating passenger flights on an ad hoc basis.
Freight rates have increased from around US$1.10 per kg before the conflict to between US$3.20 and US$3.50 per kg. In comparison, exporters from Kolkata, India, are shipping at around US$2.10 to US$2.20 per kg.
Exporters operate under fixed contracts from January to December, limiting their ability to adjust prices. As a result, higher logistics costs are being absorbed. Saiful Hossain, proprietor of Farhin International, said he agreed to sell pointed gourds at US$2.20 per kg, while export costs have risen to US$3.90 per kg, resulting in a loss of US$1.70 per kg. "Now I pray every day not to receive any work order. If I do, I have to bear the loss," he said.
Bangladesh exports around 50 tons of vegetables per week, with about 70% destined for the Middle East. Flight suspensions and increased costs are affecting supply to these markets.
Jet fuel prices have also increased. In March, Bangladesh Petroleum Corporation raised prices by 112.7%, leading to higher cargo rates. On Biman routes to Canada, freight rates increased from US$3.55 to US$5.60 per kg.
Kuwait has also been affected, with flights suspended by Jazeera Airways, Biman, and Kuwait Airways. Buyers are shifting orders to India, where cargo operations continue from Kolkata.
According to the Bangladesh Fruits, Vegetables and Allied Products Exporters' Association, around 90% of Bangladesh's exported vegetables are also produced by competitors such as India and Malaysia. "As a result, if we fail to deliver, buyers can easily switch to other suppliers, leading to a loss of market share," said Mobasserur Rahman.
Export Promotion Bureau data shows vegetable exports reached just over US$81 million in the previous fiscal year. During the July to February period of FY26, exports totalled US$57.73 million, up from US$45.8 million a year earlier, an increase of 26.05%. However, export earnings declined by 37.78% year-on-year in February to US$5.55 million.
Source: Daily Sun
