The blockade, called by the opposition, has disrupted the transportation of import and export goods, causing significant disruption to the country's industrial sector.
Stakeholders have raised concerns about the decline in production as imported raw materials are not reaching factories on time. The disruption is affecting the production of all types of industrial goods, including ready-made garments, the major export earner for Bangladesh.
Exporters are facing huge challenges in meeting buyer's deadlines due to delays in transportation. These complications are causing disruption to shipments and putting export contracts at risk.
Entrepreneurs say freight fares have almost doubled on all routes, including the vital Dhaka-Chattogram corridor, putting huge pressure on businesses.
Amid rising political tensions, the readymade garment industry is witnessing a decline in orders, adding to the challenges faced by exporters and manufacturers.
Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Business Standard that the ongoing blockade is hindering timely delivery of imported garments to garment factories. As a result, it has become difficult to meet buyer deadlines.
He also highlighted the increase in transport costs, saying that the freight cost of transporting goods from Narayanganj to Chattogram has more than doubled from Tk12,000 to Tk25,000 since the lockdown was imposed.
Chattogram C&F Agents Association Port Affairs Secretary Md Liaqat Ali Howlader expressed concern about the transportation crisis caused by the ongoing blockade. He said importers are now paying almost double the previous fare of Tk15,000 to transport goods from Chattogram port to Dhaka.
Main Uddin, vice-chairman of the central committee of Bangladesh Truck Workers Federation, blamed the increased fares for the large-scale arson attacks on vehicles during the blockade. This has created fear among truck drivers to drive on the roads, making the situation worse, he said.
In recent weeks, the BNP and Jamaat-e-Islami have imposed a series of nationwide blockades demanding the resignation of the current Awami League government and the formation of a non-partisan caretaker government to oversee the next national elections.
RMG orders fell in CTG port
Readymade garment factory owners have reported a significant decline in orders during the first ten days of November, falling by more than 20% compared to the same period in October. They fear that the decline could reach 30% by the end of November.
About 450 textile factories, including 350 BGMEA member factories in Chattogram, contribute to the export of ready-made garments. These companies typically receive orders worth $200 million per month. However, orders fell to $113 million in October.
BGMEA vice president Rakibul Alam Chowdhury revealed that BGMEA member factories in Chattogram received orders worth about $44 million in the first ten days of October. The figure fell to $35 million during the same period in November, representing a decline of 20.45%.
Container deliveries declined by 50% in CTG port
Under normal circumstances, Chattogram Port usually delivers around 4,000 to 4,500 containers per day, with around 6,000 to 7,000 trucks, covered vans and prime movers transporting these containers.
However, due to the ongoing blockade, container deliveries have dropped to just 2,000 per day. This represents a significant decline of about 50% compared to the normal delivery rate.
Chattogram port data shows container deliveries have consistently been below normal volumes since October 27. Between October 27 and November 15, container deliveries remained within the 2,000 TEU to 3,000 TEU range on only 10 out of 19 days. For the remaining nine days, container deliveries ranged from 3,000 TEU to 5,000 TEU.
Meanwhile, importers are facing additional financial burden due to the blockade as they have to pay penalties for not being able to take delivery of containers on time from the port.
Under normal circumstances, importers have a grace period of four days to clear their containers from the port yard without any hire charges. However, after this initial grace period, importers will have to pay $6 per day for a 20-foot container during the first week.
The daily fine subsequently doubles to $12 for the second week and increases to $24 starting on the 21st day. For 40-foot containers, charges follow the same doubling pattern.
As of November 15, Chattogram Port had 27,665 TEU containers in its yard, which is more than half of its holding capacity of 53,518 TEU.
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