Published: 11:05 PM, 08 September 2026
Disrupted Supply Chains, Hiked Petroleum Prices Make Foreign Trade Difficult
Bangladesh’s foreign trade is facing growing difficulties as disruptions in global supply chains combine with higher petroleum and shipping costs. The problem has become particularly serious for an import-dependent economy such as Bangladesh, where fuel, raw materials, machinery, industrial inputs and consumer goods are closely linked to international markets.
The latest geopolitical tensions in the Middle East have further exposed the vulnerability of global trade routes. Disruptions around the Strait of Hormuz and the Red Sea have affected oil supplies and shipping movements, while longer routes, higher insurance premiums and rising bunker-fuel costs are increasing the expense of transporting goods. Although global crude prices have fluctuated, refined fuel and marine fuel costs have risen sharply, placing additional pressure on international shipping.
For Bangladesh, the consequences are especially significant. The country depends heavily on imported energy, with around 95 per cent of its energy needs met through imports. A large share of crude and refined petroleum imports also comes from the Middle East, leaving the country exposed to disruptions along the region’s major maritime routes.
Rising transport costs
Petroleum is not simply another imported commodity. It is an essential input into almost every stage of modern trade. Ships need bunker fuel to carry containers across oceans; trucks require diesel to transport goods from ports to factories and warehouses; aircraft depend on jet fuel; and factories need energy to process imported raw materials.
Consequently, when petroleum prices rise, the impact spreads throughout the supply chain. Shipping companies increase freight rates or impose fuel surcharges to cover higher operating expenses. In March 2026, international shipping lines introduced additional fuel-related charges, including surcharges of $160 for a 20-foot container and $320 for a 40-foot container on many routes. Such charges directly increase the cost of Bangladesh’s international trade.
Higher freight rates are particularly troublesome for Bangladesh’s export-oriented industries. The ready-made garment sector, which depends on imported fabrics, fibres, chemicals, machinery and accessories and exports finished products to distant markets, is highly sensitive to logistics costs. A rise in transportation expenses can reduce exporters’ profit margins and make Bangladeshi products less competitive in international markets.
Small and medium-sized exporters are likely to face even greater difficulties because they generally have less bargaining power with shipping companies and international buyers. If freight costs remain high, exporters may be forced either to absorb the additional expenses or pass them on to buyers. The first option reduces profitability, while the second can weaken competitiveness.
Import costs are also rising
The difficulties are not confined to exports. Bangladesh needs imported fuel, food items, industrial raw materials, capital machinery, chemicals, fertiliser and other essential products to keep its economy running. When shipping becomes more expensive and international commodity prices rise, importers have to spend more foreign currency to bring the same quantity of goods into the country.
This creates pressure on the country’s balance of payments and foreign-exchange reserves. A higher import bill can also widen the trade deficit if export earnings do not increase at a similar pace.
Official foreign-trade statistics show the scale of the challenge. Bangladesh’s trade in goods and services recorded a substantial deficit in April 2026, with imports increasing more rapidly than exports. For the three months ending in April, the average monthly import of goods and services was substantially higher than the average export, resulting in a sizeable average trade deficit.
Higher petroleum prices can make this imbalance worse. Bangladesh must spend additional dollars to purchase fuel, while exporters need to compete in markets where buyers are themselves facing inflation and uncertain demand.
Supply-chain disruption creates uncertainty
The present crisis is not merely a matter of higher prices. Disrupted supply chains also create uncertainty about whether goods will arrive on time.
When vessels avoid dangerous maritime routes, they may take longer alternative routes. Longer voyages consume more fuel and require additional crew time, while delays can lead to congestion at ports and shortages of containers. Businesses consequently need to maintain larger inventories, increasing the amount of capital tied up in stock.
For Bangladeshi manufacturers, delayed arrival of imported inputs can interrupt production. A factory may have adequate orders but be unable to meet delivery deadlines because essential components, raw materials or machinery are stuck in transit. Such delays can ultimately affect relationships with foreign buyers.
The situation is particularly concerning because global supply chains are already being reshaped by geopolitical tensions. The continuing instability around the Strait of Hormuz has reduced energy flows and forced some importers to seek supplies from more distant sources. Longer routes may improve energy security, but they also increase transportation costs.
Pressure on inflation and consumers
The effects of expensive foreign trade eventually reach ordinary consumers. When importers pay more for petroleum, freight, raw materials and insurance, businesses generally attempt to recover their additional costs through higher prices.
Fuel-price increases can therefore affect the prices of food, clothing, construction materials, medicines and other necessities. Higher transportation costs raise the expense of moving agricultural products from rural areas to cities. They also increase production costs in factories and operating costs for retailers.
The result can be a broader inflationary pressure at a time when households are already struggling with increased living expenses. The International Monetary Fund has warned that prolonged geopolitical conflicts can keep energy prices elevated and make inflation more difficult to control, particularly in countries dependent on energy imports.
Bangladesh needs greater supply-chain resilienceThe current difficulties highlight a structural weakness in Bangladesh’s economy: excessive dependence on imported energy and a limited diversification of supply sources. More than 80 per cent of the country’s crude oil imports have historically come from the Middle East, making Bangladesh vulnerable to geopolitical disturbances in that region.
The country therefore needs a long-term strategy to make its trade and energy systems more resilient. Diversifying sources of petroleum and other essential commodities should be a priority. Bangladesh can also strengthen strategic reserves so that temporary disruptions do not immediately affect domestic markets.
At the same time, greater investment in renewable energy could reduce dependence on imported fossil fuels. Solar power, energy efficiency and other domestic energy sources cannot eliminate petroleum imports overnight, but they can gradually reduce exposure to international price shocks.
Bangladesh also needs to improve its ports, customs procedures, inland transportation and logistics infrastructure. Faster clearance of imported and exported goods can reduce the cost of delays and improve the competitiveness of local businesses.
Policy support is essential
The government, businesses and financial institutions must work together to manage the pressure. Policymakers need to ensure adequate foreign currency for essential imports while discouraging unnecessary imports during periods of severe external pressure.
Exporters should receive assistance in improving productivity and reducing logistics costs. Financial institutions can provide appropriate trade-finance facilities to businesses facing higher working-capital requirements. At the same time, Bangladesh should continue negotiating diversified trade and shipping arrangements with different countries and logistics providers.
Businesses, for their part, need to rethink their supply-chain strategies. Depending excessively on a single supplier, shipping route or source country is increasingly risky. Companies should explore alternative suppliers, maintain reasonable inventories and use digital systems to monitor shipments and anticipate disruptions.
A difficult road aheadThe present global situation demonstrates how closely Bangladesh is connected to developments thousands of kilometres away. A conflict or blockade in a strategic maritime corridor can raise fuel prices, increase freight charges, delay shipments and ultimately affect the prices paid by Bangladeshi consumers.
Global oil markets remain highly uncertain. The International Energy Agency has projected a significant decline in global oil supply in 2026 because of renewed instability in the Middle East and disruptions to major shipping routes. Reuters Meanwhile, analysts expect oil prices to remain elevated as geopolitical risks persist.
For Bangladesh, the lesson is clear: foreign trade cannot remain dependent on cheap and uninterrupted transportation. The country must prepare for a world in which supply-chain disruptions and energy-price volatility may become more frequent.
Strengthening domestic energy capacity, diversifying import sources, improving logistics, expanding renewable energy and supporting exporters are therefore not merely economic options. They are necessities for protecting Bangladesh’s trade competitiveness and economic stability.
Unless these structural weaknesses are addressed, disrupted supply chains and higher petroleum prices will continue to make foreign trade more expensive, uncertain and difficult. For an economy aspiring to expand its global trade, building resilience must now be treated as an urgent national priority.
Nasir Uddin Shah is Chief
Reporter at The Asian Age.
