Businessmen see great potential in transshipping Bangladeshi products through the Maldives to third countries, said Shiuneen Rasheed, high commissioner of the Maldives to Bangladesh.

"The process of exporting Bangladeshi products to Europe through the Maldives began in July last year. However, the scale is still relatively small," she said today (10 April) during a Country Lecture Series programme titled "From Malé to Dhaka: Strengthening Bangladesh-Maldives Bilateral Cooperation."

The event was organised by the Bangladesh Institute of International and Strategic Studies (BIISS) at the BIISS auditorium.

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Shiuneen Rasheed also noted that businessmen remain optimistic about the potential for increased transshipment from Dhaka to Malé.

Her remarks come at a time when India has revoked the transshipment facility for Bangladeshi export cargo to third countries transiting through Indian land borders to its airports and seaports.

However, India clarified that the move would not affect Dhaka's trade with Nepal and Bhutan via Indian territory.

In a notification issued on Tuesday (8 April), India's Central Board of Indirect Taxes and Customs (CBIC) announced the withdrawal of transshipment facilities for Bangladeshi export cargo to third countries via Land Customs Stations (LCSs) to Indian ports or airports, whether in containers or closed-bodied trucks.

This facility had been initially granted through an Indian circular in June 2020.

Earlier, in November last year, Indian media outlet Mint reported that Bangladesh, the world's second-largest garment producer, had opted to bypass India and instead ship its textile exports through the Maldives for onward distribution to global markets.

This move has impacted the cargo revenue of Indian airports and seaports amid strained bilateral ties.

"Previously, Bangladeshi goods were shipped through Indian airports, but now shipments are being rerouted via other locations. This shift means Indian airports and ports are losing revenue previously earned from handling these cargoes," Deepak Tiwari, managing director of MSC Agency (India) Pvt Ltd, told Mint.

MSC (Mediterranean Shipping Company) is one of the world's leading container shipping companies.

According to the report, Bangladesh is rerouting its textile exports via sea to the Maldives, from where the cargo is then flown to global destinations, including to clients such as H&M and Zara.

"This new route offers Bangladesh a strategic advantage along with improved reliability, which is crucial for meeting tight deadlines in the international clothing market," said Arun Kumar, President of the Association of Multimodal Transport Operators of India.

"Furthermore, by reducing reliance on Indian ports, Bangladesh is ensuring greater control over its supply chain."

Maldives Airports Company Ltd now offers a sea-to-air cargo transshipment service, allowing goods to be brought to the Maldives by sea and then flown to international destinations. This service began in March 2024, with the inaugural shipment—garments from Bangladesh—arriving by sea and flown to Germany via Turkish Airlines in May, according to media reports.

Seven airlines—Qatar Airways, Emirates, Turkish Airlines, Aeroflot, Gulf Air, Neos Airlines, and Etihad Airways—are part of the Maldives' transshipment network, the reports added.