Special Correspondent, Dhaka:
Bangladesh’s trade and energy security could face renewed pressure if escalating tensions around Yemen’s Red Sea coast disrupt shipping through the Bab el-Mandeb Strait, a key maritime corridor linking Asia with Europe and the Middle East.
The risk comes as shipping routes are already under strain following disruptions in the Strait of Hormuz. A prolonged disruption in the Red Sea could force more Bangladesh-bound and Europe-bound vessels to sail around the Cape of Good Hope, adding thousands of kilometers to journeys and increasing transit times, fuel consumption, and insurance costs.
Industry insiders estimate that such rerouting could add around 15 days to deliveries and push freight rates up by 40% to 50%. The impact could be particularly significant for Bangladesh’s garment sector, which depends heavily on maritime transport for access to European markets.
While larger exporters may have some capacity to negotiate higher logistics costs with buyers, smaller and medium-sized firms could face greater pressure. Exporters operating under landed-duty-paid arrangements would be particularly exposed because they bear responsibility for delivering goods to buyers’ warehouses.
The wider concern is energy security. Bangladesh relies on imported fuel and LNG, making it vulnerable to sustained increases in international energy prices and shipping costs. Brent crude has already risen sharply, while Asian LNG prices have also climbed amid broader concerns over supply disruptions.
The simultaneous disruption of Hormuz and Bab el-Mandeb would reduce the availability of alternative maritime routes for energy shipments, potentially intensifying competition for supplies in Asian markets.
Recent shipping data indicate that cargo flows have already been shifting in response to the Hormuz disruption, underscoring the importance of alternative routes. For Bangladesh, this creates a need for close monitoring of shipping schedules, freight rates, and global energy markets.
The immediate challenge is therefore not only maintaining export competitiveness but also ensuring adequate fuel inventories. A prolonged disruption could expose Bangladesh to higher import costs, longer delivery times, and renewed pressure on businesses and consumers.
