Global containers and shipping crisis, garments sector in fear

Due to the lockdown imposed in the country to prevent corona, the closure of the garment factory and the cancellation of the foreign purchase order caused trouble to the people involved in the sector. Although the government’s special incentive package for the export sector has eased somewhat, the global container and shipping crisis has hampered it.

Exporters are being forced to deliver garments by air due to the container crisis. This is increasing the fear. Because, part of the profit is going to go in renting an airplane. However, those involved in the garment sector are hopeful that relief will return soon.

“Now there is a global crisis,” said one garment entrepreneur. Earlier it was possible to export goods in 21 days, but now it takes 35 to 40 days. As a result, the container is stuck in the port, and the ship is also in the same situation as the container has not been unloaded. This is creating a severe container and ship crisis.

The cost of importing goods has risen due to the global ship, empty container crisis. The cost of traveling by river again in early January may increase. Industrial raw materials and consumer goods have to be imported to Bangladesh by ship. The shipping schedule has been disrupted due to the coronavirus epidemic, which is still ongoing. Due to this the lack of empty containers has made the import trade more difficult.

Asked whether the container crisis would have an impact on exports, Fazle Shamim Ehsan of the Bangladesh Knit Garment Manufacturers and Exporters Association (BKMEA) said, “There is a dire side to this temporary crisis.

The buyer is canceling the order of my goods, re-ordering, again saying to send quickly. This means that the goods have to be shipped by air, but the cost is higher even if the goods go faster. What the entrepreneur has to bear is more than the cost. ‘

Sunbd/NJ