The world’s largest exporter of garments is facing extreme disruptions in supply chain operations and berthing delays as per analysts in Linerlytica (an Asian container shipping consultancy).
Vessels docked at the port yard in Chittagong have taken up 80% of the area yesterday alone, with a mere 1,175teu being cleared as opposed to 8,000teu, evident from previous statistics.
Chittagong (also known as Chattogram) provides access to not only several sea ports but land ports linking through the landlocked Nepal, Bhutan and cities in India’s Northeast.
Spokesperson for the Chittagong Port Authority, Omar Farouk, highlighted that the delivery numbers have also dropped from 4,000teu on a normal day to a staggering 329teu.
This comes as no surprise amidst continuous political unrest that has been going on for weeks, escalating with the chaos following the resignation of the Prime Ministry Sheikh Hasina. The country’s primary foreign currency rests upon the earnings from the export of textiles and garments.Currently, the largest port in South Asia; Petrapole port along with Gojadanga, Mahadipur and Fulbari are impacted by the recent developments.
Supply chains are further experiencing delays with custom processes remaining in suspension. Customs operations in Benapole land port had came to a standstill following these events, with over two thousands worth of good-laden trucks becoming stranded. Additionally, factories have been shut down for days, amounting to a loss of $270m, as per Bangladesh Garment Manufacturers and Exporters Association.
These disruptions have not only hindered trade for Bangladesh alone. Engineering Export Promotion Council Arun Kumar Garodia expressed concerns relating to export trade in India, Bangladesh’s largest trade partner, with numbers largely dropping in 2022-23 from USD 12.21 billion to USD 11 billion in the period 2023-24.
The consequences of these interruptions are yet to be seen, unless tackled with caution.
