Port Delays Surge in Bangladesh After PM’s Departure

Resignation

Bangladesh, the world’s third-largest exporter of clothing, is facing unprecedented supply chain chaos following Prime Minister Sheikh Hasina’s resignation. The situation has led to the longest berthing delays globally, severely impacting the country’s export capabilities.

After weeks of intense protests, curfews, and internet outages, Sheikh Hasina resigned on August 5th after 15 years in power. As protesters stormed her palace in Dhaka, she fled the country, and the army has since taken control as an interim government. Despite this, chaos continues to reign across the nation, affecting everything from trade to daily life.

Unprecedented Delays at Chattogram Port

Chattogram Port, which handles over 90% of Bangladesh’s international trade, is now experiencing the worst berthing delays worldwide. Around 50 ships are currently queued in a 25-nautical-mile stretch outside the port, with some vessels waiting upwards of a week to berth. Yesterday’s container clearance at the port was a mere 1,175 TEU (twenty-foot equivalent units), a stark decline from the typical daily clearance of up to 8,000 TEU.

This slowdown is largely due to the student-led protests and the broader political turmoil engulfing the country. The protests and subsequent disruptions have also hindered rail transport, affecting the flow of imported goods and oil to Dhaka and other regions. Additionally, cross-border links with India, Bhutan, and other neighboring countries have been closed for the past few days, further exacerbating the situation.

Impact on Bangladesh’s Economy

Bangladesh’s ports have struggled to keep up with soaring traffic volumes in recent years, particularly as the country has emerged as a significant exporter of garments. Chattogram, also known as Chittagong, is a critical link to the hinterland and provides sea access for landlocked Himalayan countries like Nepal and Bhutan, as well as India’s northeast region. The port’s congestion and delays not only affect Bangladesh’s economy but also the economies of these neighboring countries.

The disruption in Chattogram Port is causing a ripple effect across the global supply chain. Delays in berthing and clearance mean that goods are not reaching their destinations on time, leading to stock shortages and increased costs for businesses worldwide. The situation is particularly dire for the garment industry, which relies heavily on timely deliveries to meet retail demands.

Broader Supply Chain Challenges

The current crisis in Bangladesh is a stark reminder of the broader vulnerabilities in global supply chains. Political instability, combined with logistical challenges, can severely disrupt trade flows, impacting businesses and economies far beyond the immediate region. As the situation in Bangladesh illustrates, even a single chokepoint can have far-reaching consequences.

Companies reliant on Bangladeshi exports must now navigate these delays and find ways to mitigate the impact on their supply chains. This might include diversifying sourcing strategies, seeking alternative routes, or increasing inventory levels to buffer against delays. However, these measures come with their own set of challenges and costs.

The Importance of Moisture Control

As ships wait longer at sea and in port, the risk of moisture damage to cargo increases. Fluctuating temperatures inside steel containers can cause condensation, leading to what is known as “container rain.” This moisture can damage goods, particularly textiles, electronics, and other sensitive items.

Super Dry’s advanced desiccant solutions can help protect cargo from moisture damage during these extended delays. By absorbing excess moisture, our desiccants ensure that goods remain in optimal condition, preserving their quality and value despite the prolonged wait times at Chattogram Port.

Moving Forward

As Bangladesh grapples with its current crisis, the international community and businesses must stay informed and adaptable. Understanding the complexities of the situation and its impact on global trade is crucial for developing effective strategies to navigate these challenges.

Super Dry remains committed to supporting businesses through these turbulent times. Our moisture control solutions are designed to protect your valuable cargo, ensuring it reaches its destination in perfect condition. Visit our website to learn more about how we can help safeguard your products from moisture damage, even in the face of significant supply chain disruptions.