The country's export sector faced troubles as shipments were being handled manually following the shutdown of internet. However, according to a report published in this newspaper on July 24, the "Customs authorities Tuesday restored some of its networks to release some key commodities and raw materials while the shipment of exportable goods remained mostly suspended at major ports, sources said." Although media reports state that around a thousand readymade apparel (RMG) factories are gearing up to reopen factories, the big question is whether the serious gridlock of containers at the country's principal sea port, Chattogram can be eased.
The internet is slowly being brought back online. International shipping companies have demanded that unless it is fully restored, the problem of issuing bills of lading (BL) cannot be done. Now that the internet has been restored and the software system governing BL(s) is working again, it is imperative that the port authorities work round the clock to lessen the container congestion. While that takes care of the port situation, a requisite internet speed is a must so that these processes can be completed. It is neither possible, nor practical for most RMG companies to send their representative for meeting buyers abroad. A host of issues have emerged on the supply chain for them to resolve. While the customs authorities have restored some of their networks to release some key commodities and raw materials, the export situation remains murky. It is understandable that the government's focus is geared towards releasing perishable items, but again, without full restoration of digital services, the functions of the land and sea ports cannot be expected to resume fully. Reports vary as to how many thousands of containers have piled up at the ports and awaiting shipment. There should be absolutely no confusion regarding the timeline for exports of RMG. The global industry for clothing is a highly contested arena and competing countries will be vying to grab some business from Bangladesh. Major brands that have built up relations with RMG companies in Bangladesh will value their long-term relations with their Bangladeshi partners only for a permissible period, before switching to alternative supply chains. This experience should act as a wake-up call for the authorities to design their systems in a manner that will allow for law enforcement agencies to pull certain services off the air, including social media and messaging services without affecting general internet services. Such systems do exist in other countries and Bangladeshi policymakers need to study those systems for introduction of one or replication.
It is necessary to understand that import and export go hand in hand. Feeder vessels come in with imports which are offloaded and the same vessels take on containers for the export markets. Needless to say, the country has suffered reputational damage and there is no guarantee that the sad events of the last few weeks will not be repeated in the future. With that possibility in mind, more robust back-up systems need to be designed for future application so that customs and ports may continue to function under difficult circumstances. All the systems are now digitalised and everything is recorded online. There is a general tendency to forget the basic tasks once tragic and ugly events are overcome. Hopefully, things will be treated differently from now on.
The good news is that customs is finally back online and resumption of exports of goods is also back on track. Serious time lapses have happened and nearly an entire week has been lost. According to media reports, as many as 6,500 bills of export have been piling up daily at the ports and round-the-clock operation will be needed to clear them. Following the earlier complexities, exporters were facing uncertainties about meeting lead time and searching alternative routes in case seaport cannot provide the services" This is what business leaders fear and it is not unfounded. As pointed out by a major RMG conglomerate. To quote it, "If the seaport is unable to release export goods, we have to switch to airfreights incurring higher cost". But what percentage of RMG export can realistically be diverted to air shipment? It is not just a cost factor, but there is also the question of capacity.
Air freight is a stop-gap measure that the biggest names in the industry may resort to for a brief period of time; it is not sustainable and also not possible for the bulk of the industry.
The need to communicate with foreign buyers has now been fully addressed, but the problem of actual shipment remains a major headache. There had been mass confusion about precisely what tonnage of goods are stuck at port and foreign buyers are only interested to know the timeline before regular shipment is restored. These matters, thankfully, have been addressed fast. Granted that there are security concerns in the country but export is a highly sensitive issue too. The events of the past few weeks ran the risk of putting the economy at a difficult state. Given that the stakes could not be any higher, it can only be hoped that policymakers recognised the dangers of such an event recurring. This is a matter of national security and it had to be addressed more adroitly.
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