Political unrest including widespread shutdowns and blockades, has led to the cancellation of approximately $30 million worth of orders for Bangladesh RMG exporters over the past three months.
Sources confirm, 35 garment factories have already lost confirmed shipment orders. Since October 27, cargo handling, the delivery of imported raw materials, and the shipments of RMG exports, been completely stalled.
Officials at the Chittagong Port Authority reported, the suspension of container deliveries from the port due to the lack of transportation could lead to severe congestion. The Bangladesh Inland Container Depots Association (BICDA) warned stakeholders, the political deadlock has created a critical situation at the seaport and private off-docks, threatening a huge container jam for both export and import cargo.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) estimates, political programs like general shutdowns or ‘hartals’ alone cost the sector Tk. 2.00 billion (around $18 million) in losses per day.
Abdul Wahab, First Vice President, BGMEA, emphasized, due to obstacles induced by 'hartal' callers, exporters are losing RMG shipment orders besides facing huge discounts caused by late shipment, being compelled to arrange air shipment, and missing further orders/
Wahab noted, about 25 per cent of RMG export orders are currently being held up. This comes after the sector had just begun receiving solid orders from global buyers following two months of slow business in the aftermath of the Rana Plaza collapse and the Tazreen Fashions fire.
BICDA reported, around 3,224 containers loaded with export cargo (mostly RMG) are piled up at inland container depots (ICDs) because they cannot be moved to the port for shipment. Additionally, 2,728 import containers have been awaiting delivery to importers since Sunday morning.
Nurul Quayyum Khan, President, BICDA, explained, violent activities by the opposition party workers have forced suspension of all kinds of cargo handling in the off-docks. Export goods cannot arrive from the factories to the off-docks; nor can we deliver containers laden with export cargo for the feeder vessels waiting in the port.
Furthermore, the transport of empty containers between the private off-docks and the Chittagong Port has also been suspended, leading to a massive stockpile at the ICDs. Khan urged all stakeholders to take immediate and effective steps to end the stalemate through negotiation.
