Global Shipping Risks Force Costly Detours for Bangladesh
A fuel oil tanker recently reached Bangladesh after a much longer journey. The MT Ninemia, carrying fuel for Bangladesh Petroleum Corporation, took 50 days to arrive. This trip usually takes only 16 days. The tanker sailed from Saudi Arabia on July 23.
The vessel took a longer route to avoid risks in the Red Sea. It bypassed the Bab el-Mandeb Strait. This strait is a key shipping passage between Yemen and Djibouti. Houthi forces in Yemen now control strategic areas near this strait.
Taking this longer route added up to 4 million US dollars to the cost. PK Roy, a local representative for the tanker, confirmed this. Such added costs do not happen on the direct route.
This change affects Bangladesh’s vital trade. The Bab el-Mandeb Strait became an important path for fuel from Saudi Arabia. This was after the Iran war disrupted another route, the Strait of Hormuz. Now, the Red Sea route also has security concerns.
Houthi forces claim commercial ships from non-Saudi countries are safe. However, the growing conflict worries ship owners and traders. This situation impacts Bangladesh’s economy in many ways.
Bangladesh sends a large share of its exports to Europe and parts of the United States through this sea lane. This route is also important for trade with African and Mediterranean countries. Recent government data shows trade with these regions was 46.45 billion US dollars. This included 35.51 billion US dollars in exports.
About 39 percent of Bangladesh’s total foreign trade depends on this route. More importantly, 77 percent of the country’s total exports use it. If ships avoid the Bab el-Mandeb and Suez Canal, journeys will be longer and more expensive.
This adds 10 to 12 days to trips around Africa’s Cape of Good Hope. Fuel use and transport costs will increase. Mahmud Hasan Khan, president of BGMEA, said exports would feel an indirect impact. He noted delays in raw materials could hurt garment production.
Mustafizur Rahman from the Centre for Policy Dialogue stated the crisis could lower Bangladesh’s export competitiveness. He also warned of extra pressure on fuel imports. Mr. Rahman suggested finding alternative fuel sources and increasing solar power use.
