The export of vegetables and seasonal fruits from Bangladesh has dropped significantly after transportation costs nearly doubled over the past five months, mainly due to rising air freight tariffs.

Rising Tariffs and Declining Competitiveness

The cost of air tickets from Bangladesh to Europe and the Middle East has increased sharply, negatively impacting the competitiveness of local exporters in global markets. The situation worsened after the outbreak of hostilities between the US/Israel and Iran, which created additional challenges for exports.

Comparison with Neighboring Countries

Air freight tariffs in neighboring India and other competing countries remain lower than in Bangladesh. High tariffs in Dhaka put local exporters at risk of falling behind their international competitors.

Main Export Destinations and Consequences

The Middle East is a key market for Bangladeshi vegetable and fruit exports. The loss of capacity caused by military conflicts has become a serious problem for exporters. Additionally, shipments to America and Europe have also dropped significantly in recent months.

Tariff Changes

Freight rates from Dhaka to Toronto have risen from $3.40 per kilogram in January to $6 per kilogram. Currently, air freight from Bangladesh costs $6–6.50 per kilogram to America, $4–4.50 per kilogram to Europe, $1–1.50 per kilogram to the Middle East, and up to $2.50 per kilogram to Kuwait.

Possible Cost-Reduction Measures

Various measures have been proposed to reduce expenses, including repairing scanning machines and lowering cargo handling fees in Dhaka. These steps could help decrease overall business costs and support the competitiveness of Bangladeshi exporters in global markets.