Supply chain turmoil grips Bangladesh due to political stability

Supply chain disruptions in Bangladesh, the world’s third-largest clothing exporter, have led to the longest berthing delays globally. Approximately 50 ships are lined up in a 25-nautical-mile stretch outside Chattogram port, following weeks of protests, curfews, and internet outages. The situation intensified with the resignation of Sheikh Hasina, who led Bangladesh for 15 years.

Linerlytica, an Asian container shipping consultancy that monitors global congestion, reported today that Chattogram, which handles over 90% of Bangladesh’s international trade, is now experiencing the worst berthing delays worldwide. Ships are waiting in the Bay of Bengal for up to a week.

Container clearance at the port was just 1,175 TEU on a single day, a sharp drop from the usual daily clearance of 7,000 to 8,000 TEU. The slowdown is attributed to the political instability affecting the country.

In recent years, Bangladeshi ports have struggled with increasing traffic volumes due to the country’s growing status as a major garment exporter. Chattogram, also known as Chittagong, is vital for linking the nation to its hinterland and provides sea access to the landlocked Himalayan countries of Nepal, Bhutan, and India’s northeast region.

Disruptions in rail transport have hindered the flow of imported goods and oil to Dhaka and other regions, while cross-border connections with neighboring countries, including India and Bhutan, have been closed for several days.