Garment exporters opt for the more affordable Maldives route, avoiding airports in Dhaka and India

Garment exporters are now using the Maldives as a more affordable and faster alternative to traditional air shipment routes through India or Bangladesh

Nov 4, 2024 - 14:00
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Garment exporters opt for the more affordable Maldives route, avoiding airports in Dhaka and India
Garment exporters opt for the more affordable Maldives route, avoiding airports in Dhaka and India

Exporters have reported that air freight via the Maldives, located roughly 2,800 km from Dhaka in the Indian Ocean, saves nearly a dollar per kilogram on shipments to Europe. Traditional routes through Dhaka, Kolkata, Colombo, or Singapore have become either too costly or too slow. The garment industry, facing significant delays due to student protests in July and August, saw logistics grind to a halt.

In recent months, air shipment costs from Dhaka had risen to $6.30–$6.50 per kg, compared to the Maldives route now costing only $3.80–$4.10 per kg for European shipments. This new Maldives route was discovered almost by chance, explained Kabir Ahmed, president of the Bangladesh Freight Forwarders Association (BAFFA), who noted that the shift emerged as Dhaka’s shipment costs surged. Demand spiked as factories resumed production under a new interim government, leading to a need for rapid shipment solutions.

Daily dry cargo demand at Dhaka Airport nearly doubled to 800–900 tonnes from the usual 400–450 tonnes, creating a substantial backlog. Additionally, maritime shipping through Chattogram port was halted during the protests, worsening the delays.

Hazrat Shahjalal International Airport in Dhaka remains a costly option due to high operational fees and challenges, including a lack of essential equipment like scanning machines and explosive detection systems (EDS). The limited number of international flights from Dhaka further complicates timely shipments.

In contrast, the Maldives offers quicker and more affordable air freight, with rates around $3–$3.50 per kg, making it an attractive option for local exporters.

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