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Article

25 Aug 2024

Author:
New Age

Bangladesh: Garment industry faced with 'new blow' as flooding disrupts supply chain, global buyers asked for understanding

"RMG supply chain disrupted by flood", 25 August, 2024

The country’s apparel makers on Saturday said that the recent flooding had disrupted the readymade garment sector supply chain by submerging the Dhaka-Chattogram highway and sought alternative routes for transportation of goods in time of any natural calamities...

‘There is no doubt that the flooding will impact the timely shipment of readymade garment products, with the transportation through the Dhaka-Chattogram highway remaining suspended. However, we are uncertain about the overall impact this natural calamity will have on our business operations,’ former Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan told New Age.

Transportation will most likely resume tomorrow or the day after, but exporters will still face delays in meeting lead times, he said.

Faruque expressed hope that buyers would take the situation into account, as the natural calamity is an unavoidable circumstance...

Bangladesh Knitwear Manufacturers and Exporters association executive president Mohammad Hatem said that the flood had disrupted the supply chain of the readymade garment sector, with both the shipment and release of containers halted since August 22 due to the Dhaka-Chattogram highway being submerged...

Hatem said that after a month-long disruption caused by the student movement in the country, exporters had just begun clearing the backlog of shipments and releasing import consignments but the sudden flood had created a new challenge, hindering business momentum.

He claimed that global buyers had already begun pressuring suppliers to use air cargo for shipments to ensure timely delivery to their stores.

Hatem mentioned that exporters would have to cover the cost of air freight, which would amount to at least 50 per cent of the total value...

After a month-long disruption caused by the nationwide student movement, business had just begun to rebound, but the sudden flooding has dealt a new blow, he said.

The BGMEA president hoped that the goods transportation on the Dhaka-Chattogram highway would resume today and that normalcy would soon be restored.