A massive fire that burnt down the import section of the Dhaka airport cargo village has delivered a severe blow to Bangladesh's garment supply chain, threatening to derail peak shipments crucial for the upcoming Christmas sales season.

Exporters fear extensive delivery delays and work order cancellations as the fire gutted almost all imported samples and production accessories stored in the facility -- essential for current production cycles and future seasons.

Industry insiders estimate that the loss from the destruction of products at Hazrat Shahjalal International Airport (HSIA) could exceed the initial estimate of $1 billion.

The Dhaka airport fire was the third incident in a week that raised concerns among businesses, who are encountering a sharp increase in tariffs at the Chattogram port, increased interest rates on loans, high inflation and a slowdown in domestic demand, and a fresh 20 percent tariff on exports to the US, Bangladesh's single biggest market.

At this stage, the airport fire will dent the country's image and give competitors an upper hand.

Businesses said the losses should not be seen simply at the import value of the items that were gutted. The ripple effects of the fire would heavily fall on both export-oriented garment and pharmaceutical industries, as well as businesses focused on the domestic market.

The import cargo zone had everything from a tiny item like lace or other accessories, to spare parts and samples of products sent by buyers to place fresh orders.

Garment exporters' reliance on air freight to meet tight deadlines means the loss is compounded by existing logistical challenges.

Nurul Amin, former vice-president of the Bangladesh Freight Forwarders Association (BAFFA), warned that air shipment pressure would become "higher this year" due to the backlog created by the fire. The strike at Chattogram port has already been forcing a "significant quantity" of goods to be diverted to HSIA.

While the airport typically handles up to 1,000 tonnes of dry cargo daily, volumes spike dramatically during the October-December rush. Now HSIA's capacity is bracing for yet another surge in air cargo to rapidly replace the destroyed samples and accessories.

Industry leaders are scrambling for solutions. Faisal Samad, a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said authorities have temporarily allocated warehouse space at the airport's Third Terminal to help manage the cargo overflow and expedite recovery.

While the export section remained untouched, Samad cautioned that the destruction of vital production samples could still lead to cancellation or non-renewal of work orders by international partners, warning of "multiple impacts" across the sector.

Inamul Haq Khan, senior vice-president of BGMEA, said the association is asking members to register losses as it has secured assurances of government support from Commerce Adviser Sk Bashir Uddin.

He demanded a swift government investigation into the incident and called for enhanced security within the airport's sensitive areas to reassure foreign buyers.

To ease immediate congestion, the BGMEA has instructed members to clear all imported materials from the airport within 36 hours, while the government has directed the cargo village to operate round the clock, including on weekends, to accelerate processing.

BROADER IMPACT

The lost goods included not just garment materials but also other sensitive cargo, such as pharmaceuticals and telecom equipment.

Muhammad Halimuzzaman, deputy managing director and chief executive of Healthcare Pharmaceuticals Limited, warned that Bangladesh's pharmaceutical sector will face disruption following the recent airport fire.

Halimuzzaman, who also serves as treasurer of the Bangladesh Association of Pharmaceutical Industries, told The Daily Star that most major drugmakers had consignments of raw materials stored at the airport.

"These are temperature-sensitive, time-bound materials. Even a single batch loss can halt production," he said, adding that many firms operate with just-in-time inventory systems, heightening the risk of imminent shortages of essential medicines.

He urged swift government intervention, including fast-tracking approvals from the Directorate General of Drug Administration, the commerce ministry and the Department of Narcotics Control to expedite import processing.

"We're already in contact with API [Active Pharmaceutical Ingredient] manufacturers to resume supply," Halimuzzaman said. "Now, we need government support to prevent disruption."

On the possibility of using alternative terminals, he said, "That decision rests with the authorities. Our priority is restoring the supply chain as quickly as possible."

Mizanur Rahman, customs coordinator for Salvation Logistics, said all 40 consignments his firm had inside the facility were either burnt or damaged. "All were telecom items that we distribute to various operators. Our losses may exceed Tk 10 lakh," he told The Daily Star.

Belal Hossain of Jane Trading Ltd, a clearing and forwarding (C&F) agent specialising in garments and foreign investment imports, estimated that his clients' goods, worth Tk 200 crore, were lost in the fire.

At the site, forwarding agent Nizam Bhuiyan described the destruction as "immeasurable".

"Crores and crores worth of products have been damaged. I can't even estimate how big it is without getting inside," he said.

Mohammad Rafiq, in charge of Matata Trading Company Limited, said they had prepared to pay nearly Tk 30 crore in taxes to customs, but the entire consignments worth around Tk 250 to 300 crore was destroyed.

Most of the items were high-value mobile components such as ICs, displays, and other accessories from brands such as Oppo, Xiaomi, Vivo, Samsung, OnePlus, and Realme, Rafiq told The Daily Star yesterday.

DELAY IN FIREFIGHTING

The Dhaka Customs Agents Association accused the Civil Aviation Authority and the fire service of a delayed response, saying the lack of coordination caused "irreparable damage".

"Unfortunately, the Civil Aviation Authority and the fire service failed to arrive at the spot instantly to douse the blaze. This irreparable damage was caused due to the delay and a lack of coordination," the association said in a statement.

In response to media queries over the alleged delay, Adviser Bashir Uddin said a full probe was underway, covering all possible aspects of the fire. "Within 30 seconds of the fire being reported, our firefighting team was deployed," he said, adding that 37 units participated in extinguishing the blaze, with additional water supplied by WASA.