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An indefinite transport strike stalls shipping services and disrupts Bangladesh's external trade at a time when export and import both began to see pickup after a long slump following the coronavirus pandemic.
Exporters, mainly the apparel makers who are keen to bank on the country's weakening currency and bumper Christmas orders, have been booking shipping. But a blow came all on a sudden for a wildcat transport strike in a brusque reaction to a fuel-price hike.
They say the two-way trade is in trouble for lack of covered vans and trucks to deliver their goods to depots in Chattogram. And those who already booked the goods onto the containers at the depots are not finding lorries to deliver the cargoes to the port because of the ongoing strike that began Friday following the price hike of fuels by BPC, a state monopoly on petroleum import and marketing, on grounds of global price rises.
"The strike is threatening supply chain as the imports of raw materials and food items remained stuck at the Chittagong Port," said many a source at the seaport.
Around 5000 trucks that transport imported goods from the seaport every day have been at halt over the past two days, people having direct knowledge of the matter told the FE.
On the other hand, shipping executives say, this will push up chartering cost by US$20,000 a day. However, they will adjust the escalated cost with the freights and it's people who will ultimately pay for.
"The transport strike is proving one of the most calamitous economic events as it has chain effect on all economic sectors," said Syed Mohammad Arif, president of Bangladesh Shipping Agents Association (BSAA), a trade- promotional body of around 500 shipping firms in Bangladesh.
He hints that it will create shipping congestion afresh at the premier port if the standstill continues further.
And port congestion increases 'lead time' in export delivery to the overseas market, thereby affecting trade copetiveness. Lead time is a prime concern of readymade garment exporters and buyers.
The Chattagram seaport, considered Bangladesh's commercial lifeline, handles more than 90 per cent of the country's around $100 billion worth of external trade.
"If there is no delivery, how the ships will discharge the containers?"
Another shipping executive, Captain AS Chowdhury, country head of Sea Consortium, a leading body of feeder-vessel services plying between Chattogram and Singapore, said that around 60,000 containers got stuck due to the strike.
"Containers on vessels, port and depots all may stand around 60,000 and all have no movement. It has costs." says Captain Chowdhury.
On the other hand, private depots which handle nearly 100-per cent exports of Bangladesh say that there has been no container movement since Friday. More than 1,000 containers the depots send to the port for shipment each day. They also bring back the same number of containers from the port for stuffing goods.
"All container movements between port and off-docks remained halted since Friday," said Ruhul Amin Sikder, secretary-general of the 18 depots' association called BICDA.
The port had run smoothly over the past few months with no vessels waiting in queue at the outer- anchorage. Now four container vessels are in wait at its outer- anchorage.
Bangladesh's export boomed to $4.7 billion in October, a more-than-60-percent surge. Imports worth $7.5 billion arrived in September, a rise of more than 50 per cent compared to its corresponding period a year before.