B'desh exports face fresh Red Sea shock

Bangladesh's export lifeline is under fresh threat as Houthi attacks and the US-Iran war have nearly shut the Strait of Hormuz and threatened shipping through the Red Sea.

Exporters say freight costs could jump 40-50 percent and add 15 extra days to reach Europe and the Middle East if vessels are forced to bypass the Suez and sail around Africa — a rerun of the 2024 crisis that cost the sector millions.

Bangladesh exports over $800 million worth of goods to the Middle East annually, mostly readymade garments, with the region also hosting over 2 million workers whose remittance flow depends on stable shipping and oil prices.

The crisis deepened after Saudi Arabia halted loading at Yanbu port following pipeline damage, while only four vessels crossed Hormuz on Monday against a normal 125, according to Kpler data. Brent crude still trades above $104, after hitting $108 on the Makkah drone scare.

BGMEA leaders warned that buyers may defer orders if freight spikes and lead times lengthen during the peak Christmas shipment season. Bangladesh Bank said it is monitoring the impact on import of raw materials and LNG.