Myanmar-Bangladesh maritime trade grinds to a halt as AA enforces naval inspections

The Arakan Army (AA), which now controls over half of Rakhine State, is disrupting maritime trade by intercepting cargo ships between Yangon and Bangladesh, asserting its growing power in the region. Since launching offensives against Myanmar’s junta forces in Rakhine State in November 2023, the AA has tightened its grip on both land and maritime territories of the region, severely impacting trade routes.The closure of border trade posts near Sittwe, the capital of Rakhine State, and Maungdaw, a border town with Bangladesh, have forced traders to rely on sea routes from Yangon. But these zones have now also been blocked, largely because the AA has been conducting ship inspections, which has brought maritime trade to a standstill. A representative from the Rakhine State Chamber of Commerce and Industry, who requested to remain anonymous, told Myanmar Now that while the fighting in Maungdaw has subsided, the AA’s dominance over maritime routes have caused a sudden halt in trade.“The ships from Yangon are now subject to inspections, causing a halt in sea trade,” the official said. “They had been using the road from Yangon for almost a year, but we only learned that it was blocked a few days ago.” The Myanmar-Bangladesh border stretches more than 168 miles, with the Naf River serving as a natural boundary. Historically, goods were shipped from Myanmar through the Maungdaw and Sittwe border trade posts to Bangladesh's Teknaf jetty. But due to ongoing unrest caused by the civil war, direct shipments from Yangon to Teknaf started to become increasingly common towards the end of 2023. In December last year, the AA’s seizure of Maungdaw allowed the powerful armed group to enforce an indefinite ban on sea travel along the Naf River. This move has effectively cut off one of the key trade routes between the two countries. Arakan Army troops were observed near Kyauk Pan Du beach in Maungdaw on June 3, 2024. (Photo: AA Info Desk) The AA, which now controls 14 of Rakhine State’s 17 townships, has also set up its own local administration, including a coast guard force that inspects ships and monitors cross-border activity. The ethnic armed organisation has intercepted several cargo ships traveling from Yangon to Bangladesh, including three ships detained on January 16, though they were later released. With no official word from the junta on sea trade with Bangladesh, uncertainty hangs over the industry. The Myanma Port Authority’s berthing list shows just one cargo ship, a rice shipment, set to depart in early February, with no other vessels scheduled to follow. Business analysts, speaking on condition of anonymity, have raised concerns about the long-term impact of these disruptions.“The AA’s control over the Myanmar-Bangladesh border puts them in a position where they could potentially block most sea routes,” one analyst warned. “If they take control of the Ayeyarwady region, they could cut off almost all maritime exits.” Trade between Myanmar and Bangladesh has been steadily declining since the 2021 military coup, falling from $162 million in 2020-2021 to just $68 million by 2023-2024. With the junta restricting access to trade data, the current figures remain unknown. Today, traders are finding it increasingly difficult to conduct business with Bangladesh, with one trader putting it bluntly.“If trade does not resume, its value will drop to zero,” he said. “Commerce can only continue with permission from the AA, and that is a difficult process.” At the same time, Bangladesh has faced a dilemma over whether to accept shipments from Myanmar, particularly those bearing AA-approved documentation. The Bangladesh government has acknowledged that it engages and deals with the AA as the junta’s presence in the state has dwindled. Myanmar Now has made attempts to reach AA spokesperson Khaing Thukha, but he has not responded to requests for comment. As the regime continues to lose control in Rakhine, the AA has taken steps to support local trade across the state.Pe Than, a former MP from Myebon Township, who is also affiliated with AA’s leadership, told Myanmar Now that the AA has been facilitating the production of goods locally and assisting traders in navigating cross-border commerce."The AA helps traders by supporting local production and facilitating trade with neighboring countries," Pe Than said. While most townships in Rakhine are under AA’s authority, Sittwe, Kyaukphyu, and Munaung remain under the junta’s control. Tensions remain high, especially after the AA launched offensives against Sittwe on February 7. Intense battles have raged over the last remaining townships as the junta and AA fight for control of the state capital.

Myanmar-Bangladesh maritime trade grinds to a halt as AA enforces naval inspections

“If they take control of the Ayeyarwady region, they could cut off almost all maritime exits”

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