Falling exports steadily sap momentum at Chittagong port

International buyers seek four-month fuel supply roadmap

Until recently, steady growth in export cargo helped sustain overall growth, but the current export downturn now strains that trend.

A drop in exports is now dragging on overall growth at the Chittagong Port, Bangladesh’s main export gateway. Container handling had kept rising thanks to steady trade flows, but falling exports since the start of the fiscal year are now weighing on port operations. Uncertainty over fuel supplies from the Middle East conflict deepens the anxiety. International buyers are turning more cautious, according to exporters. They say buyers are seeking a fuel supply roadmap for the next few months before placing new orders.

Port sources say loaded export container handling fell to 60,026 TEUs (twenty-foot equivalent unit) in March, the lowest level this fiscal year. January saw 79,762 TEUs and February 62,438 TEUs. Export momentum has thus declined steadily since the start of the year. Including empty containers raises the total, but the drop in loaded containers reveals the true state of the export sector.

Bangladesh exported about $3.4 billion worth of goods in March, down nearly 18 percent from $4.25 billion in the same month last year, according to the National Board of Revenue. The export sector is facing pressure on both volume and value.

Industrialists warn that any manufacturing slowdown and broader economic weakness directly hit container movements through Chittagong port. Most industrial raw materials arrive by container and nearly all exports travel in them. Chittagong handles about 99 percent of the country’s total container traffic. Changes in production and exports thus quickly show up in the port’s performance. Until recently, steady growth in export cargo helped sustain overall growth, but the current export downturn now strains that trend.

Salim Rahman, managing director of KDS Group, told Bonik Barta: “Export‑oriented industries worry most about fuel supply. Most factories, especially in textiles, run on gas. So uninterrupted LNG supply matters a lot. Bangladesh imports most of its LNG from Qatar. After the attack on Qatar’s energy facilities, it remains unclear how secure that supply will be. I can’t say whether the government has held coordinated talks with businesses on contingency plans. Our assessment suggests the situation may stay under control until April. If the war continues beyond that, it’s hard to predict what kind of crisis will emerge from May.”

He added that a severe fuel crunch would force many factories to suspend production. “Much of the export sector’s power generation depends on gas. Any disruption to gas supply puts the sector at serious direct risk. Alternative sources outside the Middle East exist but are costly. Still, we must pursue every possible alternative to keep production running.”

Exporters say that fewer working days during Eid-ul-Fitr and the impact of US reciprocal tariffs had barely been absorbed when the Middle East conflict delivered a major new test for fuel supplies.

Mohammad Abdus Salam, managing director of Asian Group, one of Bangladesh’s leading exporters, told Bonik Barta: “The government is taking some steps given the global situation, but reality demands more coordinated action. Authorities must rationally decide where to cut fuel use. An elected government is now in charge, so it needs to produce an emergency roadmap involving all stakeholders and share it. International buyers are asking what the government is doing to secure fuel supply before placing new orders. They want a clear picture of how the next four months will be managed. If we give them that clarity, our confidence with buyers will improve. Stronger planning and information‑sharing between government and business would send a positive signal even amid uncertainty. Freight costs have already risen, production costs have risen, garment prices have risen. We fear the export sector faces an extremely difficult period ahead.”

Import pressures are also emerging. Loaded import container handling reached 147,000 TEUs in March, slightly above February but the overall trend remains unstable. January and February saw 146,000 TEUs and 138,000 TEUs respectively at the Chittagong port.

Importers warn that any slowdown in industrial raw material shipments will hit manufacturing. Continued instability in the Strait of Hormuz, a vital oil route, will make life harder for food‑importing countries in the coming months. Global food prices already rose more than 2 percent between February and March. Higher fuel oil prices have directly increased food production and transport costs.

Mohammad Mustafa Haider, group director of TK Group, a major consumer goods importer, told Bonik Barta: “The war offers little prospect of improvement. Authorities need rapid, effective action given this reality. Global food prices have already begun rising, and the effect on Bangladesh’s imports and production is clear. The most critical issue now is how the government handles the fuel crisis. Next come inflation and currency depreciation. Business conditions have been unfavourable for a long time. Now the war adds a fresh layer of uncertainty. Diesel will cause the greatest pressure. The government is importing diesel at far higher prices than it charges at sale. Producers worry how long subsidies or price adjustments can last if the war drags on. The government can’t directly control international prices, but how quickly and efficiently it manages the situation is now paramount.”

BPC sources indicate that among petroleum products, octane and petrol cause less immediate concern, but diesel worries are mounting. Confirmed imports under contract this month stand at 220,000 tonnes of diesel, with reserves of another 135,000 tonnes. Whether further spot‑market purchases are possible, at much higher cost, remains uncertain. Under normal circumstances, supply this month should exceed 400,000 tonnes.

Aameir Alihussain, managing director of BSRM Group, told Bonik Barta: “If diesel supply falters, the impact on factory production and delivery, transport and agriculture will be multi‑dimensional. Maintaining diesel supply must be the highest priority alongside other fuels. Global uncertainty, the fuel situation and rising transport costs are already biting. The government needs further steps on priority‑setting for austerity measures.”

Total container handling — loaded and empty combined — reached 2,572,336 TEUs in the first nine months (July–March) of the current fiscal year, according to the Chittagong port’s latest data. Imports accounted for 1,409,424 TEUs and exports 1,162,922 TEUs. Port insiders say that unless the export downturn reverses quickly and fuel supply stabilises, pressure will hit not just the port’s growth but the broader economy.

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