A devastating fire at Dhaka’s Hazrat Shahjalal International Airport’s Cargo Terminal–2 on October 18, 2025 caused losses worth nearly USD 1 billion, damaging goods, electronics, pharmaceuticals, textiles, and infrastructure.
The critical question now—who is responsible under the Incoterms 2020 framework?
Liability by Incoterms
- CIF: Seller’s insurance applies; seller bears responsibility.
- CIP: Seller must provide “All Risk” coverage (ICC Clause A).
- FOB: Risk transfers to the buyer once goods are loaded.
- EXW: Risk transfers at the factory gate; buyer must insure.
- DAP/DDP: Seller is liable until delivery at destination.
Industry Response
Insurance firms are expected to:
- Verify applicable Incoterms for each shipment.
- Form a joint survey team to assess losses.
- Coordinate with reinsurers and evaluate claim documents.
Importers, on the other hand, are urged to ensure that contracts clearly mention the Incoterms and maintain their own marine insurance for FOB or CFR shipments.
The incident serves as a major lesson for Bangladesh’s trade and insurance sectors—risk management begins with clarity in contracts.