Finance
Garment Industry Impact of Russia-Ukraine war on Bangladesh garment industry: 166 containers stuck
Own Correspondent, Chittagong, March 7: The beginning of the Russian military operation in Ukraine has had an impact on the world economy. Its impact is visible in Bangladesh as in other countries. The impact of the Russian invasion has been felt in many areas, including fuel, oil and gas. It has also affected the garment industry, one of the most important sectors in Bangladesh. Garment exports are getting stuck in private container depots (offdocks) in Chittagong due to the announcement of closure of shipments to Russia by big international shipping companies.
In the last few days, 166 containers of garments coming for export from different factories of the country including the capital, got stuck in the offdocks. Uncertainty has also been created about the shipment of these.
According to the garment and shipping merchants, the world's leading shipping companies — Mediterranean Shipping Company, Maersk, Hapag Lloyd and One Line — have suspended shipments to Russia since March 1. Among other shipping companies that have not yet been suspended operations to Russia are also not taking product bookings. Moreover, many shipping companies are now reluctant to book Russian-Ukrainian goods due to the uncertainty over the receipt of shipping bills due to US-European sanctions on SWIFT.
Shahed Sarwar, director of the Bangladesh Shipping Agents Association, said the war between Russia and Ukraine was having a negative impact on Bangladesh's export industry. Problems have also been created especially in the ready-made garment sector. Meanwhile, major shipping companies are not taking bookings in Russia due to the ban. Again, due to the war situation, the goods are not going to Ukraine.
He said there were no signs of an end to the war. Again, the way the sanctions are coming one by one, even if the war is over, it will take time to overcome those.
According to the National Export Promotion Bureau, in the first seven months from July to January of the current 2021-22 fiscal year, Russia exported ready-made garments worth 42 crore dollars, which is less than two percent of the country's total garment exports. At the same time, Bangladesh has earned 2,399 crore dollars by exporting ready-made garments. In the fiscal year 2020-21, Bangladesh had a trade volume of 114 crore dollars with Russia. Of this, 59 crore dollars came from the ready-made garment sector.
