Apparel exporters are stepping up manufacturing efforts in response to the ongoing production disruptions that have occurred over the last three months due to labour unrest, curfews, and nationwide protests following the overthrow of the previous government.
In order to make up for missed production time in July, August, and September—months that are crucial for completing Western orders for the Christmas season and obtaining contracts for the forthcoming autumn and winter collections—factories are currently running nonstop.
In order to maintain their long-standing business relationships with foreign merchants, local exporters are turning to subcontractors for assistance in navigating these challenges and are demanding extensions from them. An Indian rating company called CareEdge Ratings states that roughly 10% of Bangladesh’s ready-made garment (RMG) export orders could move to rival markets like Vietnam and India if the crisis lasts longer than a few quarters.
Due to production delays, exporters are currently worried that they would have to provide significant discounts or use expensive air freight for deliveries; some may even see order cancellations. For example, the cost of air freight from Dhaka to Europe for one kilogramme of dry cargo might reach US $ 4, whereas the cost of marine freight is less than 10 cents per kilogramme.
The Bangladesh Garment Manufacturers and Exporters Association president, Khandoker Rafiqul Islam, declared that they would meet with major brands and retailers in the upcoming days to talk about the general state of the industry.
Although consumers want quick deliveries, he pointed out that no work orders have been cancelled as of yet, despite the fact that the recent disruptions cost the apparel industry over US $ 100 million in damages by interfering with production and shipment schedules and forcing clients to postpone factory inspections.
