India’s Ministry of Finance confirmed last week that Bangladesh will no longer be allowed to use Indian airports for transhipment of its export cargo.

Huge volumes of export air freight has been leaving Bangladesh via truck, moving across the border before being loaded aboard flights from India to countries around the world, including significant tonnage to the UK.

Critical backlogs and delays have become the norm at Dhaka’s Hazrat Shahjalal International Airport since last year’s civil unrest, which has led to the Indian transshipment route becoming a cost-effective and necessary solution for Bangladeshi exporters.

However, the Ministry of Finance has effectively closed that loophole and rescinded access for “export cargo from Bangladesh destined to third countries through land customs stations, ports and airports”.

The decision is understood to be a protective measure for Indian exporters, who have experienced higher costs and delays of their own due to an influx of shipments originating in Bangladesh.

While the air freight market is currently off-season, the lack of an option through India is expected to significantly impact capacity from Bangladesh, especially in the busier periods.