Bangladeshi exporters at risk from shipping shocks: HSBC

Bangladesh's exporters face rising trade risks as shipping disruptions, US tariff uncertainty, growing protectionism and the loss of LDC trade preferences threaten costs and market access, according to officials of the HSBC.

The challenges were highlighted at a business forum styled "Navigating Global Trade: Future-Proofing Bangladesh," organised by the bank in Dhaka on Tuesday.

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Shanella L Rajanayagam, senior trade economist at HSBC Global Research UK, said global trade was being disrupted on several fronts, with shipping shocks and changes in US tariff policy creating fresh uncertainty for businesses.

She said the challenge is particularly significant for Bangladesh as the country prepares to graduate from LDC status and gradually lose some of the trade preferences it currently enjoys.

"Securing preferential market access through trade deals matters more than ever," Rajanayagam said.

HSBC officials added that businesses are also having to rethink how they manage supply chains and capital as the cost of building resilience rises.

Companies now face difficult choices over supply chains, capital deployment, revenue models and investment in AI, said Aditya Gahlaut, managing director and regional head of Global Trade Solutions for Asia at HSBC.

He said resilience was no longer simply an operational issue but increasingly a balance-sheet decision, requiring companies to commit capital, hedge risks and finance changes to their operating models.

The pressure comes at a time when Bangladesh’s export sectors need to remain competitive while adapting to changing trade rules and customer requirements in major markets.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said Bangladesh's young workforce, domestic demand and rising trade volumes could create opportunities despite the changing environment.

Ahmad Rabiul Hasan, country head of Global Trade Solutions at HSBC Bangladesh, said the bank would continue to support businesses as they adjust to the evolving global trade landscape.

The forum brought together HSBC clients and business leaders to discuss the immediate risks facing international trade and what Bangladesh-based companies need to do to remain competitive.