Due to curfews that impeded maritime transport, Bangladeshi garment manufacturers are forced to use expensive airfreight to meet rising consumer demand. However, buyers are unwilling to absorb the increased expenses.
Furthermore, sources reportedly claim that even clients who are open to using airfreight are asking for 15 per cent –20 per cent price reductions.
The Government-imposed curfew and internet outages that followed widespread student protests across the nation last month have severely impacted the majority of transit services.
Approximately 3,000 tonnes of cargo by air were unable to be sent. The vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Arshad Jamal Dipu, stated he had to transport 80,000 pieces from port depots in Chittagong back to Dhaka.
“Until this Sunday my company,Tusuka Group, spent some Taka 320 million to send goods by aircraft after failing to send them by ship in time,” reportedly said Dipu, its chairman.
On Monday, the BGMEA held a meeting with global apparel buyers requesting there not be any ‘system-generated’ discounts for delayed shipments which would reduce their earnings.
Exporters say a discount of 5 per cent -10 per cent is automatically generated by the systems of major buyers if there is a 15-day or more delay in making shipments.
