Carriers deploying additional ships help ease the cargo backlog in Bangladesh

Container lines serving Bangladesh’s strained supply chains are making concerted efforts to clear the cargo backlogs at Chittagong Port. The congestion at the port began following recent political unrest, which brought business operations across the country to a halt.

Several carriers, including Maersk, have deployed additional vessels to help lift stranded exports at Chittagong, according to industry sources. Maersk, in particular, sent an ad-hoc vessel last week and is reportedly considering more extra sailings to alleviate the congestion. As per the reports, there is a need to clear the congestion at Chittagong. Maersk, which operates four weekly intra-Asia connections out of Bangladesh—including the newly added SH3 service—reported last week that operations at the port and landside were gradually returning to normal. The carrier observed an increase in container movements and stated that ports continue to remain operational, and there has been an uptick in container movements. As the situation is still fluid and constantly evolving, they are planning to continue to keep a close eye on developments.

Despite the challenges posed by the ongoing political volatility, carriers remain optimistic about the trade outlook in Bangladesh. Global importers are increasingly diversifying their apparel and ready-made garment (RMG) sourcing beyond China.

Reflecting this sentiment, Pacific International Lines (PIL) and SeaLead jointly announced a new weekly intra-Asia service from Chittagong, set to begin at the end of the month. The service, named the Far East Bangladesh Express, will operate on a rotation that includes Ningbo, Shanghai, Shekou, Chittagong, and Ningbo.

Siva Mahadevan, SeaLead MD for South Asia, the Middle East, and Africa also commented on the situation of Bangladesh, he said that the launch of the Far East Bangladesh Express highlights their strategic focus on expanding their network coverage in the Indian Subcontinent and the services offered have significant advantages to the customers as it reduces lead times and improves supply chain efficiency.

PIL branded the new route as its China-Chittagong Express (CCE), offering transit times of nine to 14 days. This service will complement its existing BD1 and BD2 services, which serve Bangladesh trade through transhipment at its Singapore base. Meanwhile, as Bangladesh recovers from the political crisis, stakeholders in India’s apparel industry view it as an opportunity to attract more RMG orders from Western buyers. Indian RMG exports saw a 12% year-on-year increase in July, according to recent data.

Sudhir Sekhri, Chairman of India’s Apparel Export Promotion Council stated that in the long term, buyers remain skeptical of being overly dependent on Bangladesh. He further added that even before the current turmoil, buyers were exploring other capacities due to saturation in Bangladesh.