As regional trade dynamics evolve in South Asia, Bangladesh is forging a new logistics pathway by routing its export goods—particularly textiles—through the Maldives. This shift comes in the wake of India’s decision to revoke transshipment access for Bangladeshi cargo, catalyzing a strategic realignment of supply chains and export logistics.

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Key Developments and Strategic Shifts

In July 2024, Bangladesh began exporting products to Europe via the Maldives, a move that, while still limited in scale, signals a long-term logistics realignment. The Maldivian High Commissioner, Shiuneen Rasheed, emphasized the “significant potential” for transshipping Bangladeshi goods, especially to European markets.

This shift is a direct response to India revoking transshipment facilities for Bangladeshi export cargo through its borders—an act that has disrupted long-established supply routes and impacted Indian port and airport revenues.

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Snapshot: Transshipment Shift from India to Maldives

Aspect	Details
Transshipment Initiation	July 2024 – Small-scale operations began via Maldives
Indian Restrictions	Revoked transshipment facility for Bangladeshi cargo
Primary Export	Ready-made garments (RMG), Bangladesh’s top export
Alternate Route	Sea-to-air transshipment via Maldives
Service Launch	Sea-to-air cargo service began in March 2024
Airline Partners	Qatar Airways, Emirates, Turkish Airlines
Strategic Benefits	Greater control, enhanced supply chain reliability, faster access to Europe
Impact on India	Declining cargo revenue at Indian ports and airports

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The Maldives: Emerging as a Strategic Export Hub

The Maldives Airports Company Ltd launched a sea-to-air transshipment service in March 2024, enabling Bangladeshi goods to be shipped by sea to Malé and then flown to international markets. This solution offers a viable alternative to the disrupted Indian routes, particularly valuable for Bangladesh’s time-sensitive garment exports.

With established air freight links via Emirates, Qatar Airways, and Turkish Airlines, this route is gaining traction. These airlines offer seamless connectivity to Europe, North America, and the Middle East, making the Maldives a pivotal hub in the emerging South Asian logistics map.

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Why This Matters for Bangladesh

For Bangladesh, this realignment offers not just logistical convenience, but a strategic edge in the global garment industry, where delivery timelines and reliability are crucial. By diversifying its export routes, Bangladesh reduces over-dependence on neighboring India and gains leverage in negotiating freight and trade terms.

The Maldives route provides:

• Improved reliability in meeting shipment deadlines.
• Reduced supply chain risks tied to geopolitical changes.
• Enhanced global market access through major airline networks.

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Regional Implications and Forward Outlook

India’s policy change has inadvertently opened the door for the Maldives to step into a critical transshipment role in South Asia. For Indian ports and airports, this means a loss in cargo handling revenue and a potential re-evaluation of regional trade facilitation policies.

For Bangladesh, the continued development of this route will depend on:

• Scale-up capacity at Maldivian ports and airports.
• Cost-efficiency versus traditional Indian routes.
• Infrastructure investments to handle rising export volumes.

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Conclusion: New Routes, New Rules

Bangladesh’s pivot to the Maldives for transshipment is more than a reaction—it’s a strategic recalibration. As geopolitical tides shift, so too must supply chains. This move reflects not just changing logistics preferences but also the resilience and adaptability of Bangladesh’s export sector, which is looking beyond borders to secure its place in global trade.