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Blockade could dent supply chain
FROM PAGE B1
He said the ongoing labour unrest and the political unrest will erode buyers’ confidence.
Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said political unrest is always a matter of concern for the apparel industry.
Many local garment makers will face challenges while negotiating orders with international buyers during the blockade, he said.
“There is a possibility that orders might shift from Bangladesh to other countries because of political unrest.”
Hatem urged political parties to ensure that the garment sector does not fall victim to any political agitation and requested them to keep the export sector out of the purview of blockades like they did in the past.
Khairul Alam Suzan, vice-president of the Bangladesh Freight Forwarders Association, said the blockade has created fears and uncertainty among businesses.
“I have received calls from several businesses about whether they will send cargo or take delivery from the port tomorrow. They are concerned about whether vehicles will reach their destinations safely and timely. But we can’t give any assurance to any.”
Suzan said the blockade may affect the smooth movement of vehicles with exported and imported goods.
“And this will disrupt the supply chain and industries will be unable to get the imported raw materials to make finished goods while exporters will not be able to send their export consignments on time to maintain lead times.”
Besides, he said, if the political situation turns volatile, the supply of essential commodities, including imported ones, is likely to be disrupted, leading to price spiral.
If goods are left in the port undelivered, the cost of businesses will increase since they will have to count detention charges and demurrages.
“A supply chain disruption will affect us in various ways,” Suzan said.
Shams Mahmud, managing director of Shasha Denims Ltd and Shasha Textiles Ltd, leading exporters, said: “This is indeed a worrying time for everyone involved in the RMG industry. The flare-up of political and industrial unrest will not be beneficial to anyone.”
He said they have forecasted the situation and taken measures to have adequate stocks on hand to supply fabrics to the factories they work with.
“However, because of the worsening situation, the delivery by these factories has, in some cases, been deferred. This will create late delivery issues for them.”
“Personal safety is the top priority for every garment and textile mill owner.”
Mahmud, also a former president of Dhaka Chamber of Commerce and Industry, said if any further deterioration of law and order takes place, it will have a negative domino effect on the industry.
“We hope the main foreign exchange earning sector will be kept out of all these problems.”
According to Mahmud, any disruption in the supply chain of garments will result in air shipment, which is expensive.
FBCCI’s Alam said, “We will take some initiatives so that we can make political parties understand the importance of saving the economy.”