Bangladesh's trade bodies rallying for Red Sea safety

13 Feb '24

1 min read

Pic: Adobe Stock

Insights

The Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) along with the BGMEA and the BKMEA, have joined a global initiative to ensure safe passage of commercial vessels on the Red Sea.
Close to 30 per cent of global trade depends on Red Sea route, which is currently under intermittent attacks from Houthis.

Three major trade bodies from Bangladesh, including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have recently joined an international initiative, calling on governments to collaborate in ensuring safe passage of commercial vessels on the Red Sea route.

It may be mentioned here the Red Sea route is primarily utilised by Bangladesh for exporting garment items to Europe and the US.

Even though, retailers and brands cover the transportation costs using a freight on board method international, the local suppliers who opt for a cost and freight method are relatively scarce in number.

Nevertheless, the trade bodies —BGMEA, BKMEA, and the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) — decided to come together to call upon countries to participate, endorse, or align themselves with broader cooperation efforts aimed at ensuring safe and secure maritime trade in the Red Sea.

Around 30 per cent of global trade relies on the Red Sea route, encompassing vital commodities such as food, clothing, agricultural products, energy, footwear, electronics, and medicine.

Unfortunately, this crucial artery of commerce faces threats lately due to the intermittent attacks by Houthi militants.

Fibre2Fashion News Desk (DR)

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