Gradual Recovery to Supply Chains in Bangladesh

Following nationwide unrest and a five-day internet blackout, broadband connections in Bangladesh have been restored, prioritising financial, industrial, export-import, diplomatic, IT, and crucial service hubs.

Industrial Operations Resuming
Numerous apparel factories across Chittagong, Narayanganj, and Gazipur have resumed operations. The majority of factories in Chittagong are operational again, along with over 300 factories in Narayanganj BSCIC, while some factories in Savar, Ashulia, and Gazipur have also resumed activities, with Export Processing Zone (EPZ) factories are expected to reopen shortly.

Impact on Air Freight
With limited internet connectivity restored, we can now send documents for pending shipments and those dispatched prior to the shutdown. Shipments planned from 19th July were delayed due to the unavailability of customs documents, resulting in some shipments being delayed in the cargo village or in warehouses. Improvements are expected from Wednesday afternoon as connectivity continues to be restored.

Challenges in Ocean Freight
Chittagong Port has begun processing shipments manually, prioritising perishable goods and industrial raw materials. Customs service has been manually approving the delivery of containers for which duties were already paid before the internet blackout. As of yesterday morning, Chittagong Port, with a capacity of 53,518 TEUs, had over 40,000 TEUs at the terminal, leaving a safety buffer of fewer than 4,000 TEUs.

The ongoing curfews in critical areas continue to challenge export activities and travel arrangements. However, the gradual relaxation of curfews and reopening of offices and banking services indicate that impacts on the supply chains may be mitigated.

We are actively collaborating with clients impacted by the evolving situation in Bangladesh, striving to minimise disruptions to their operations. Our team is committed to navigating these complex challenges and maintaining the integrity of our customers supply chains amidst this challenging situation.

If you have concerns about any of the issues discussed or would like to explore contingency plans, please EMAIL Matt Fullard.