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Article

25 Jul 2024

Author:
Benjamin Parkin, Chan Ho-him & William Langley, Financial Times

Bangladesh: RMG sector faces disruption from protest crackdowns, curfews, and communication blackouts & increasing shipping costs

" Bangladesh garment sector rocked by protest crackdown", 25 July 2024

More than 100 people have been killed in recent days in clashes between police and students, who are demonstrating against a job quota system that they say benefits allies of Prime Minister Sheikh Hasina’s government.

Authorities last week imposed the curfew, cut off mobile and internet services and deployed the army, with security forces reportedly given shoot-on-sight orders.

...

The turmoil in the country of 170mn has alarmed groups including H&M, as blackouts prevented brands from communicating with their contractors. The unrest also delayed orders, raised shipping costs and shook confidence in Bangladesh,

...

One global industry executive said the violence and disruption had “massively dented confidence in [Bangladesh’s] ability to function as a state”, as companies were working to speed up overdue orders.

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an industry group, said shipping delays and obstacles to transport goods to ports would prompt western buyers to consider shifting parts of their supply chain to other south-east Asian countries such as Vietnam and Cambodia.

...

The Bangladesh Garment Manufacturers and Exporters Association, the country’s main trade body, told Al Jazeera that the industry was losing $150mn a day during the curfew.

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Steve Lamar, president of the American Apparel & Footwear Association, which represents companies including Adidas and Gap, said its “primary goal” was “to keep our workers safe and minimise disruptions”.

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