India has suspended the transshipment hub for Bangladeshi cargo in a move aimed at easing congestion at its key airports. The facility allowed Bangladeshi goods, especially air cargo, to transit through Indian airports en route to third world countries. Following this move, the government stated priority should be accorded to domestic cargo handling.
Ritika Arora Bhola
The Indian air cargo traders have embraced the Union government’s decision to suspend the transshipment facility for Bangladeshi cargo, citing it as a timely intervention to address severe congestion issues at major Indian airports such as airports in Delhi, Mumbai and Hyderbad.
Over the past few years, India’s major air cargo hubs—Delhi, Mumbai, and Kolkata—have experienced more pressure due to a surge in domestic and global freight volumes. The addition of transshipped cargo from Bangladesh, which used Indian airports as transit points for exports to third countries, further strained the stretched infrastructure and slowed down processing times of Indian cargo.
Traders and logistics operators voiced concerns about delayed shipments, limited warehouse space and bottlenecks affecting service efficiency and increasing operational costs. With the suspension of the transshipment facility, stakeholders in the Indian cargo sector anticipated quicker TATs, better resource allocation and improved throughput at terminals. There have been reports stating political reasons behind such a decision.
Bangladesh is getting closer to China by inviting its investment to revitalise the Lalmonirhat airbase situated in north-western Bangladesh. The airbase is near India’s Sikkim, the districts of Jalpaiguri and Cooch Behar in West Bengal and narrow Siliguri Corridor linking India’s Northeast with the rest of India, and thus it is likely to pose security threat in a politically sensitive region, prone to insurgencies.
With this decision, the exporters could be benefited by reduced competition with Bangladeshi goods by exploring fresh trade openings, which may lead to an enhanced sales and market share. With transshipment streamlined, there is a chance to reallocate air cargo resources to priority sectors such as pharma, electronics, automotive parts and engineering goods, which support India’s vision of becoming a manufacturing powerhouse. Many view this shift as a necessary measure to safeguard India’s trade logistics ecosystem and enhance competitiveness, especially as it looks to scale up its role as a global logistics hub.
While acknowledging the potential diplomatic and regional trade implications of the move, Indian air cargo professionals believe the benefits to domestic cargo flow and airport efficiency justify the decision. Industry professionals told CARGOTALK that it is a win-win situation now for the Indian cargo operators.
Exporters up for gains due to facility’s closure
Dipen Lalsodagar, Deputy Director, Cargo Sales, Global Aviation Services
Besides political reasons, the facility created congestion at key Indian airports. Logistical delays and higher costs were affecting Indian exporters, resulting in backlogs. The exporters were at a disadvantage for not getting enough cargo space. Exporters are up for major gains as they will offer business stability so, export orders will be diverted to India. With congestion easing, freight charges may come down. With the current turmoil of US tariffs hitting trade between USA and China, capacity of airline hubs is wide open, and this may result in reduction of freight rates.”
Reassess routing strategies for logistics
Huned Gandhi, MD, Air and Sea Logistics, India Subcontinent, Dachser India
Policy shifts affecti ng cross-border logistics and dynamics underline the need for agile and harmonised supply chain planning. While the decision alters existing cargo flows, it presents an opportunity for logistics providers to reassess routing strategies and fortify multimodal linkage across the subcontinent. We are committed to ensuring service continuity by working closely with customers, customs authorities and local partners to navigate evolving regulatory landscape. Our focus remains on delivering solutions supporting trade in the subcontinent.”
India seeks to manage its trade imbalance
Abhishek Goyal, CEO & Executive Director, Aeroprime Group
By suspending the transit link for Bangladeshi goods through Indian ports, India seeks to minimise its exposure to security risks, manage trade imbalance and provide a level playing field to its domestic exports and streamline supply chains. Exporters could benefit from reduced competition as this move would limit influx of Bangladeshi goods into global markets. This move will favour textiles, ready-made garments, jute products, leather bags and pharma sectors. By reducing foreign volumes transiting through Indian ports and airports, domestic shipments may face fewer delays and bottlenecks.”
Exporters to benefit from more cargo space
Sunil Kohli, MD, Rahat Cargo
With closure of the facility in India for Bangladeshi goods, local exporters stand to be benefited by reduced competition, an enhanced sales and more cargo space. This could be helpful in sectors where India has an advantage, and Bangladesh previously held a significant share. It would be advantageous for the exporters to get lower freight costs from carriers. Such a move by India may provide logistical advantage due to availability of space on the carriers at cheaper freight rate since demand would be pruned due to no movement of goods from Bangladesh.”
Allocate cargo resources to priority sectors
Balagopal Balachandran, National Head, Air Freight, FEI Cargo
The govt’s move has come as a blessing in disguise. Closure of the facility for export of Bangladeshi goods to third world nations may bring short-term volumes and revenue losses to those carriers and terminal operators, who previously handled Bangladesh cargo. This reallocation supports long-term efficiency gains for India’s exporters. The coming months will test how India fortifies its export ecosystem, while preserving regional diplomatic finesse. With transshipment streamlined, there is an opportunity to reallocate resources to priority sectors such as pharma, electronics, engineering goods etc.”
Move would streamline air cargo operations
C K Govil, CMD, Activair Airfreight
The Union government’s decision to suspend the transshipment facility for export volumes from Bangladesh aims to reduce congestion at important ports and airports. The government’s decision is expected to streamline air cargo operations, enhance port efficiency and ensure smoother handling of domestic and international air cargo. By alleviating the pressure on infrastructure, it will not only improve turnaround times (TATs) and optimise resource utilisation but also contribute to a more efficient logistics ecosystem for the country and Bangladesh in the long run.”
Reduced volumes may stabilise freight rates
Vipin Vohra, Chairman, Continental Carriers
The government suspended the transshipment facility as it delayed cargo handling, which led to booking cancellations for Indian exporters. The surge in demand also prompted airlines to increase freight rates, which added to financial strain. Mandatory 100 per cent customs checks for Bangladesh cargo overstretched airport infra and delayed processing times. The suspension of the facility eases pressure on Indian exporters, especially in competitive sectors. Reduced cargo volumes may stabilise freight rates and help the country’s goods regain price competitiveness in global markets.”
Closure stresses India’s economic interests
Xerrxes Master, MD, Master Groups
The government’s decision to close the facility for Bangladeshi exports via India’s land borders and Delhi Air Cargo Complex aims to alleviate congestion and increase competitiveness of domestic exporters. The Apparel Export Promotion Council highlighted the influx of 20 to 30 Bangladeshi trucks daily into New Delhi caused delays, increased air freight rates and strained logistics amid the Red Sea conflict. While this move may strain bilateral trade ties and affect Bangladesh’s export routes, it stresses India’s need to prioritise its economic interests and logistics efficiency.”
Now, exporters can deliver goods on time
Chaitaly Mehta, Director, EKF Global
As per estimates, 18 per cent of Bangladesh’s garments cargo was flown through Indian airports. Bangladesh exports 3,400 tonnes of garments by air per week, with 600 tonnes flown through Indian airports. The congestion and chaos created at the airport resulted in Indian cargo being delayed, missing flights, delay in clearances, increased freight rates and no or little space on the carrier. Bangladeshi goods were being given priority over Indian goods causing severe losses to Indian exporters. This move will help regularise freight rates and let exporters meet deadlines.”
Embargo could give competitive edge to India
Debajyoti Bagchi, VP, Business Development, TT Group
Discontinuation of the facility will reduce customs agents’ workload related to processing, potentially affecting their earnings and employment stability. Indian exporters who have raised concerns regarding congested terminal warehouses may now benefit from increased availability of space for consolidation of export cargo. Airport security personnel, especially screeners operating under the BCAS norms for shipments from third-world nations, may also experience reduced pressure. This embargo could provide a competitive edge to Indian exporters, especially in the apparel sector, by mitigating external competition.”
Forwarders will now get more space for exports
Afzal Malbarwala, MD, Galaxy Freight
Highlighting the need for a stable and secure trading environment, because of the heavy movement of cargo from Bangladesh to Delhi and Bengaluru, the airlines charge high rates, which affects the Indian exporters, who are difficult to move goods in India with hike in freight rates. The embargo will rationalise freight rates, reduce transport costs for Indian exporters, and ease airport congestion. Indian freight forwarders will now get more space for their exporters. India and Bangladesh are competitors when it comes to apparel exports to the Middle East and the West.”
Less congestion to perk up logistics efficiency
Kamal Jain, Director, Cargomen Logistics
India’s decision to halt the facility for Bangladeshi exports is rooted in concerns of port congestion at Kolkata and Haldia. It marks a pause to recalibrate regional logistics protocols. For Indian exporters, reduced competition in sectors such as garments provides short-term pricing and market share. Logistics efficiency may improve due to reduced congestion and better port infra. The move may strain India-Bangladesh ties, reduce volumes and lower revenues for ports who handled transshipment traffic. Indian logistics firms relied on this volume to maintain service consistency.”
Blessing in disguise for Indian exporters
Kunal Maheshwari, Chief Growth Officer Softlink Global
The move reflects a strategic shift to protect national trade interests, especially in textiles, at corridors such as Kolkata and Delhi ICDs. Indian exporters, especially MSMEs, will get some breathing space. Reduced competition would help improve margins, while less congestion means faster clearances and cargo availability for Indian firms. This shift could be a turning point for Indian exporters. With less congestion, cargo flows faster, reducing delays, demurrage and missed deadlines. To capitalise on this, exporters and forwarders must be operationally agile.”
