Three major trade bodies in Bangladesh have recently joined a global initiative urging governments to collaborate in securing the safe passage of commercial vessels through the Red Sea, aiming to prevent a recurrence of last December’s attacks. These attacks, attributed to Iran-backed Houthis controlling much of Yemen, targeted vessels, purportedly in response to Israel’s conflict with Palestinian Hamas militants. The disruptions led to the suspension of shipping along the Red Sea and Suez Canal, forcing vessels to take longer routes, such as around Africa’s Cape of Good Hope. This diversion, affecting over $80 billion worth of cargo, increased travel time by 2-3 weeks and incurred substantial additional costs in fuel and labor.
The Red Sea route is crucial for global trade, accounting for around 30% of the world’s commerce, including vital goods like food, energy, clothing, electronics, and medicine. Bangladesh heavily relies on this route, particularly for exporting garment items to Europe and the US. Although many international retailers cover transportation expenses under the freight on board method, local suppliers in Bangladesh often bear the costs through the cost and freight method.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the Leather goods And Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) have aligned with this global initiative. Spearheaded by the American Apparel & Footwear Association (AAFA) and International Apparel Federation (IAF), the initiative aims to ensure secure maritime commerce in the Red Sea and globally. It draws parallels with Operation Prosperity Guardian, a multinational security effort involving at least 23 countries to date.
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