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Cotton exports from USA hinders through Red Sea

BTJ Desk Report
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Cotton exports from USA hinders through Red Sea

The traditional route for importing goods from the United States to Bangladesh via the Bay of Bengal has become congested recently due to various reasons, including aggression from Houthi rebels in Yemen. As a result, vessels are now compelled to take longer and more expensive routes, either through the South Atlantic coast of Africa or the Panama Canal. These alternative routes lead to increased transportation costs and time.

Additionally, limitations in banking transactions have reduced the volume of imports from the United States, impacting the textile and apparel supply chain in Bangladesh. Despite the challenges, stakeholders in the apparel industry prefer imports from the United States due to the demand for contamination-free raw materials. However, importing goods from the United States is facing obstacles due to increased transit time and expenses. Consequently, the overall demand for imported cotton, a major raw material, has decreased. This situation affects coordination and increases expenses for importers like the New Asia Group in Bangladesh.

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