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Wednesday, 10 November 2021 11:53

Transporters strike in Bangladesh hampers RMG exports

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A strike in Bangladesh by truck and van owners has caused losses to RMG exporters. Many factories are facing a raw material crisis, while some are resorting to costly air freight for shipments to meet buyers’ deadlines. No exporter is able to shift goods to washing plants or embroidery units while at the same time factories are facing a shortage of accessories. BGMEA Vice-President Rakibul Alam Chowdhury feels exporters are worried about shipments as of raw material shortage has hampered production. Similarly, Mohamad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) reported, at least three exporters have had to bring back their goods from Chattogram port to send by air.

Air freight accounts for 55 per cent of a product's export price. Following a hike in diesel and kerosene prices, transport owners and workers called for an indefinite nationwide strike, demanding either a rise in fares or a reversal of the hike. They have halted the transport of goods across the country until their demands are met.

Meanwhile export orders remained stuck at ports. Goods-laden containers are not leaving the ports. Most products are readymade garment exports. As many as 300 Indian trucks carrying goods remain stranded at Bhomra port in Satkhira following the truck crisis on Bangladesh’s side amid the nationwide transport strike. Because of the strike, importers are unable to unload imported goods from the Indian trucks.