In recent months, Bangladesh’s garment shipments to major markets such as the European Union (EU) and the US have rebounded strongly, but the price per unit has declined.
Bangladesh’s readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.
Bypassing the traditional air shipment routes through India or Bangladesh, garment exporters have found the Maldives to be a cheaper as well as faster route.
Exporters say the traditional air shipment routes through Dhaka, Kolkata, Colombo or Singapore had either become too expensive or too slow
Bangladesh, the world’s second-largest garment producer, has opted to bypass India and ship its textiles to global markets through the Maldives, hurting the cargo revenue prospects of India’s airports and ports amid strained bilateral ties, reports Mint.
Bangladesh’s overall exports fell 4.34 percent year-on-year in FY24 due to lower shipments of ready made garments (RMG), reflecting sluggishness in industrial activities and the economy.
International clothing retailers and brands yesterday expressed concern about the timely shipment of goods following the latest spell of violence stemming from the quota reform movement, imposition of curfew and five-day internet blackout, which crippled economic activities.
They gave assurance of not seeking any discount or air shipment or cancelling work orders
Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.
Bangladesh’s garment manufacturers are pinning their hopes on the burgeoning Asian markets and the growing use of non-cotton apparel items to elevate their export earnings to $100 billion by 2030.
Recessions don’t happen overnight, and people don’t stop spending from one day to the next.
In recent months, global energy prices have soared, and ready-made garment (RMG) makers in Bangladesh have been feeling its impacts these past few weeks.
Marking new possibilities, a garment consignment has left Mongla Port. A Panamanian-flagged ship named "Maersk Nesna" left Mongla Port for Poland at 11:30 am today (July 28, 2022).
The ongoing Russia-Ukraine war has started to have a heavy impact on garment shipments to Russia as export earnings are declining significantly from this promising market for Bangladeshi apparel goods.
The additional 1 per cent cash incentive on the export receipts of readymade garments would continue in the next fiscal year as the government looks to boost the shipment of clothing items.
Bangladesh Bank has given AnonTex, which took more than Tk 5,500 crore from Janata Bank through serious irregularities, a controversial permission to take more loans from other state-owned banks as well, reschedule its loans and valuate its assets afresh to make it look like a healthy company.
