Bangladesh's garment industry threatened by crisis

Since its independence in 1971, Bangladesh has established itself as one of the main players in the global textile industry, becoming the third largest exporter of garments after China and Vietnam. However, the country is now facing a major crisis that threatens to deeply disrupt this vital sector. The resignation of Prime Minister Sheikh Hasina, after 15 years in power, has triggered a series of disruptive events: violent protests, curfews, internet shutdowns, and military intervention. This situation has not only disrupted port logistics in Chattogram, the country's main port, but also led to economic losses estimated at several billion euros for the clothing sector. Bangladesh, the world's third largest garment exporter, is currently plunged into total chaos. In a few weeks, this key country for the clothing industry has gone from a pillar of stability to a logistical battlefield. The situation in Chattogram (formerly Chittagong), the country's main port, perfectly illustrates this chaos. Chattogram, through which more than 90% of Bangladesh's international trade transits, is now paralyzed. Analysts at Linerlytica, an Asian consultancy specializing in maritime transport, report that this port is currently experiencing the worst anchoring delays in the world. About 50 ships are waiting in a 25-nautical-mile line in the Bay of Bengal, some being forced to wait more than a week before they can unload their cargo. Yesterday, only 1,175 TEUs (twenty-foot equivalent units) were unloaded, a derisory figure compared to the 8,000 TEUs normally handled daily. This paralysis is explained by strikes, blockages, and the almost total halt of port operations caused by student protests and political unrest shaking the country.

The repercussions of this crisis on the clothing sector are colossal. Many international buyers, worried by the unstable situation, have canceled their orders or now require that goods be transported by air, which is much more expensive, rather than by sea. Initial estimates indicate losses of more than 4 billion dollars in orders, with direct losses of 800 million dollars for the sector in just five days. International buyers, once loyal to Bangladesh for its low production costs and abundant workforce, are starting to reevaluate their sourcing strategies. Vietnam, India, Cambodia, and Indonesia are emerging as potential alternatives. A major shift that could reshape the global textile production map. Socially, the consequences are just as disastrous. The textile sector, the true lifeblood of the Bangladeshi economy, employs millions of people, mostly women. With factories closed and orders canceled, massive job losses seem inevitable. This situation could lead to increased poverty and social tensions already exacerbated by the political crisis. Zaved Akhtar, president of the Chamber of Commerce for Foreign Investors, stated that industrial curfews and internet shutdowns are expected to have an economic impact of 10 billion dollars, with costs continuing to rise. The current crisis not only threatens the garment sector but the entire Bangladeshi economy.

In response to this crisis, the reactions of authorities and local businesses are trying to allay concerns. Mostafiz Uddin, CEO of the Bangladesh Apparel Exchange (BAE), has addressed an open letter to international buyers, fervently defending Bangladesh as a stable and attractive destination for garment production. "Despite the civil unrest, Bangladesh remains a safe and attractive destination for international fashion buyers", he claims. Uddin highlights the government's efforts to maintain a stable business environment and calls for international solidarity to continue supporting the Bangladeshi textile sector. However, for these assurances to become reality, much more than reassuring words will be needed. International buyers must maintain their trust and orders, especially with the crucial Christmas buying season approaching. "Your partnership and support are more essential than ever", concludes Uddin, emphasizing the importance of international cooperation to overcome this crisis. The future prospects for Bangladesh's textile industry remain uncertain. The sector's recovery capacity will depend on political stability and the resumption of normal logistical operations. The country may need to diversify its supply sources and invest in more resilient infrastructure to prevent such disruptions from having such devastating effects in the future.