Flooding Upends Bangladesh Supply Chain Across Rail, Road and Ports
Heavy flooding has congested a primary cargo route in Bangladesh as torrential downpours have pounded the country since Tuesday.
Sections of the Dhaka-Chattogram highway in Bangladesh’s Cumilla district have been overwhelmed by the incessant rain, temporarily stalling traffic traveling between the country’s two largest cities and slowing the movement of cargo destined for Chattogram Port (also known as Chittagong Port).
More from Sourcing Journal
Ex-Bangladeshi PM Sheikh Hasina Accused in Garment Worker Death
Maersk, Hapag-Lloyd Halt Canada-bound Cargo as Rail Shutdown Nears
On top of the transportation issues on the road, authorities decided to suspend rail services to ensure passenger safety and protect railway assets. The Bangladesh Railway cancelled journeys of 26 trains Thursday, as well five others partially connecting the cities of Chattogram and Sylhet.
The hurdles are yet another challenge for the Bangladesh garment sector as the country endured weeks of anti-government protests and the ensuing ouster of Prime Minister Sheikh Hasina.
Trucks carrying goods from Dhaka and elsewhere in the country have faced obstructions, diversions and delays in reaching container depots in Chattogram. In some places, the highway was reportedly waist-deep in water, with traffic congestion stacking up for 25 miles in one area.
The highway congestion have already caused a shortage of goods transport vehicles in Chattogram. As a result, the number of trucks arriving at the port for deliveries declined. According to a Friday report from supply chain publication The Loadstar, 2,100 export cargo-carrying trucks reached the container depots, 1,000 fewer than the day prior.
As for imported goods, the number of trucks leaving the depots hovers around 900 the report said. But in the most recent 24-hour stretch, that number had dwindled to 630 trucks.
Ruhul Amin Sikdar, the general secretary of the Bangladesh Inland Container Depot Association, told Bangladeshi publication The Business Standard that there had been no reports of the backlogs on the highway impacting operations at the container depots. However, port officials said loading and unloading operations at the depots were on the verge of being halted.
Operations at Chattogram Port itself have been dealt a blow due to the harsh weather. Mohammad Omar Farouk, secretary of the Chattogram Port Authority, reported that cargo discharge from mother vessels to lighterage ships at the outer anchorage of the port was suspended.
Although container handling at the port is normal, delivery is being hampered due to the shortage of vehicles.
“If traffic on the Dhaka-Chattogram highway comes to a halt, it will have an adverse impact on the port,” Farouk told The Business Standard.
The downpours are expected to continue through early Saturday, with the Bangladesh Meteorological Department issuing a heavy rainfall warning for much of the country on Thursday.
Chattogram Port has already been under significant duress in the wake of Bangaldesh’s nationwide student protests and unrest, which forced the gateway to close for six days. Due to the pileup of containers amid the backlog of trucks and vessels, port dockworkers already had difficult loading and unloading vessels on time. The slow movement of cargo resulted in berthing times for container ships that sometimes lasted as long as 10 days earlier this month.
In response, the Chattogram Port Authority and Chattogram customs operated 24/7, including weekends and public holidays, in a bid to reduce container congestion.
Maersk noted in a Wednesday advisory that countrywide, “ports continue to remain operational and there has been an uptick in container movements.”
On Tuesday, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) met with the port authority, calling on the brass to find new ways to expand the port’s capacity and throughput.
“[The Bangladesh] garment industry, the economic backbone of the country, has set a goal of exporting $100 billion by 2030. We all need to work together to meet this challenge,” said Syed Nazrul Islam, first vice president of BGMEA during the meeting. “In this case, considering the future, increasing the capacity of the port, speeding up the activities of the bay-terminal, including adequate handling equipment and infrastructural development should be given importance.”
The BGMEA has plenty of reason to be concerned, given the industry is the centerpiece of the country’s export economy. In 2023, Bangladesh exported $47.4 billion in total apparel, representing 85.3 percent of the $55.6 billion in total goods shipped out of the market, according to the country’s Export Promotion Bureau (EPB).
Nearly 3 million people have been affected by the flooding throughout the country, according to Bangladesh’s Ministry of Disaster Management and Relief. In some areas of the country, homes have been plunged underwater, leaving residents stranded on rooftops.