Global container shipping lines begin raising freight rates to make up for higher fuel costs, with several operators also imposing additional surcharges, inflating cost of Bangladesh's international trade.
Leading container carrier Ocean Network Express (ONE) has introduced an Emergency Fuel Surcharge (EFS) across major global trade routes, a move likely to increase Bangladesh's import costs at a time when businesses are already grappling with elevated freight rates and persistent supply-chain disruptions.
A recent notice issued by the company to its business partners, obtained by The Financial Express, shows the surcharge will apply to both dry and refrigerated containers across key trade lanes covering Asia, Europe, Africa, North America, Latin America, West Asia and Oceania.
Under the revised structure, the EFS for dry containers has been set at $160 per 20-foot container and $320 per 40-foot container across most major routes. For refrigerated containers, the surcharge stands at $210 for 20-foot units and $420 for 40-foot units.
The additional charges will affect major shipping corridors linking Asia with the United States, Europe, the Mediterranean, Africa, Latin America, the Middle East and Oceania, indicating a broad-based escalation in freight-related expenses.
Industry insiders say the latest surcharge reflects mounting pressure from rising bunker fuel prices and ongoing geopolitical tensions, particularly disruptions on key global shipping routes.
For Bangladesh, which relies heavily on import of raw materials, industrial inputs, machinery, chemicals and accessories -- primarily from China and other Asian markets -- the surcharge is expected to further inflate import costs and strain export-oriented sectors, especially the ready-made garment industry.
As everyone wants their share of war dividend, businesses have already vented concern that rising international freight charges, along with higher domestic transport costs and prolonged transit times, could erode trade competitiveness and complicate supply-chain planning.
Trade and shipping stakeholders warn that continued instability in the Middle East and vessel diversions could trigger another sharp escalation in global freight costs, reminiscent of the Covid-era crisis when container rates surged to record highs.
Ashikur Rahman Tuhin, Managing Director of TAD Group, says shipping lines are increasing freight charges in line with global fuel-price hikes, which will directly raise business costs. He adds: "Any adjustment in domestic fuel prices in response to global trends would further intensify cost pressures."
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), has noted that most apparel exports are conducted under Free on Board (FoB) terms, where buyers bear freight costs.
However, exporters operating under Cost and Freight (C&F) arrangements "will have to absorb the additional charges, which are ultimately likely to be passed on to consumers".
Meanwhile, the ongoing war in the Middle East (ME) has driven up freight costs, raising concerns among Bangladeshi exporters and importers over higher trade expenses, shipment delays, and potential disruptions to supply chains.
Business leaders say charges for shipments to and from key Middle-Eastern destinations have surged amid growing uncertainty in regional shipping routes, particularly around the Strait of Hormuz -- a critical passage for global trade and energy.
Other routes like China to Bangladesh and Bangladesh to China, the US, and the European Union (EU) have faced the same situation.
If the conflict prolongs, industry insiders warn, the impact could spread beyond the Gulf, affecting Bangladesh's import of industrial raw materials and fuels, as well as export of agro-processed foods, vegetables, and consumer goods.
Importers report that shipping lines and freight forwarders are revising rates upward, citing higher risk premiums, insurance costs, and operational uncertainty.
"Freight rates are rising due to the war, and this is creating concern among businesses," says a trader involved in import and export operations.
"If the crisis deepens, the cost burden will increase further."
Uncertainty over vessel movement and port connectivity is complicating delivery schedules, making it difficult for exporters to meet commitments on time.
Small and midsize exporters are likely to be hit the hardest as they have limited capacity to absorb higher logistics costs.
Beyond direct trade, the conflict is also pushing up global commodity and energy prices, raising production and transportation costs domestically.
Rakibul Alam Chowdhury, former vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), says, "The recent spike in freight rates on the China-Bangladesh route has already added more than $500 per container, on top of the existing $1,450-1,500.
"China is our primary source of raw materials. So this directly increases production costs."
Shipping lines are asking importers to cover additional fuel-related costs.
The closure of the Strait of Hormuz has extended lead times by up to 15 days, with vessels now rerouted via the Cape of Good Hope in South Africa.
"If the war persists, freight charges could soar to Covid-era levels, from around $4,000 to as high as $18,000 per container," Rakibul says.
Proshanta Kumar Ghosh, deputy general manager (export) of ACI Foods Limited, says most carriers are unwilling to accept containers through the Strait of Hormuz.
As a result, key markets, including the UAE, Bahrain, Qatar, and Kuwait, are now fully stocked. Shipments routed via the Red Sea through Jeddah port continue, but freight charges have more than doubled.
The average cost for a 20-foot container to Jeddah has jumped from around $2,000 to $5,000, he adds.
Exporters also face a container shortage as many are diverting shipments through the Red Sea.
"Our negotiated rate was $1,900 per container, but we are now paying $5,000," Ghosh adds.
President of BKMEA Mohammad Hatem also mentions that the World Trade Organisation (WTO) has warned that the global trading system is facing the "worst disruptions in the past 80 years".
Its chief Ngozi Okonjo-Iweala told the opening of the WTO ministerial conference, "The world order and the multilateral system we knew have irrevocably changed. We cannot deny the scale of the problems confronting the world today."
The Organisation for Economic Co-operation and Development (OECD) has downgraded its eurozone growth outlook and projected higher inflation for 2026 after the Middle East conflict sent energy prices soaring.
Since the start of the US-Israel attacks on Iran, Tehran has nearly halted shipping through the Strait of Hormuz, a vital route for global energy supplies that handles about 20 per cent of the world's energy, creating instability in global energy markets.
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