Date: 24.07.2024

Bangladesh Lockdown Easing

Peaceful protests by university students against a government job quota system favouring relatives of war veterans escalated into nationwide violence last week, resulting in over 150 deaths, communication blackouts, and curfews. Today, Bangladesh began to gradually lift the curfew imposed last Thursday, reopening offices and banks as normality slowly returns after the week-long turmoil and internet blackout.

Numerous apparel factories have resumed operations, with broadband internet connections being selectively restored in key economic zones. However, ongoing curfews remain in critical areas, continuing to challenge export activities and travel arrangements.

Over 80% of apparel factories in Chittagong have resumed operations, with hundreds more opening in Narayanganj BSCIC, Savar, Ashulia, and Gazipur. Export Processing Zone (EPZ) factories are also expected to reopen today, with the hope that all factories will be operational within days.

Following a complete internet blackout for five days, the government began restoring broadband connections from yesterday evening, prioritising financial, industrial, export-import, diplomatic, IT, and crucial service hubs. Offices, including banks, will remain open from 11:00am to3:00 pm until further notice.

Air Freight
With limited internet connectivity restored, our partners in-country can now send documents for pending shipments and those dispatched prior to the shutdown. Shipments planned from 19th July could not be moved due to the unavailability of customs documents, resulting in some shipments being stuck in the cargo village and others in warehouses. We expect improvements from Wednesday afternoon as connectivity continues to be restored.

Ocean Freight
The port has begun processing shipments manually, prioritising perishable goods and industrial raw materials. Customs have been manually approving the delivery of containers for which duties were paid before the internet blackout last Thursday night.

At around 8am yesterday, Chittagong port, with a capacity of 53,518 TEUs, had 41,620 TEUs, leaving a safety buffer of fewer than 4,000 TEUs. The government is gradually relaxing the curfew and reopening offices and banking services to contain the unrest.

We are actively working with clients affected by the evolving situation, ensuring minimal disruption to their operations. Our team remains dedicated to navigating these complex challenges and maintaining the integrity of our customers’ supply chains amid ongoing global and regional tensions.

If you have concerns about any of the issues covered here, or would like to discuss contingencies, please EMAIL our Chief Commercial Officer, Andy Smith.