Bangladesh’s export industry is grappling with sharply higher ocean freight rates as the escalating conflict between Iran and the US-Israel coalition continues to choke shipping through the Strait of Hormuz.
The disruption to one of the world’s most critical energy and trade chokepoints is forcing carriers to reroute vessels or pay steep risk premiums, costs that are being passed directly to shippers in South Asia.
Bangladesh’s fuel import bill jumped 85% in the first 11 months of the recently concluded fiscal year 2025-26, driven by elevated global energy prices stemming from the ongoing Middle East conflict.
The surge in logistics costs arrives at a vulnerable time for the South Asian economy.
Bangladesh’s fuel import bill jumped 85% in the first 11 months of the recently concluded fiscal year 2025-26, driven by elevated global energy prices stemming from the ongoing Middle East conflict.
With container shipping rates to the Middle East climbing for a fifth consecutive month, the sustained increase in freight costs highlights the deepening strain on trade-dependent economies that rely on stable maritime corridors.
The Strait of Hormuz remains the focal point of this shipping risk.