Blockade starts taking its toll on external trade

Jasim Uddin Haroon | Published: January 08, 2015 00:00:00 | Updated: November 30, 2026 06:01:00

The ongoing blockade has begun taking its toll on trade and business, especially on external trade.         
As shipments slowed and business operations slumped for inter-district road haulage halt, economists and business community believe the disruption will cast a negative impact on the overall economy.
People familiar with trade said the movement of cargoes -- be it export or import consignment -- lost pace as a result of the programmes thrown since January 5 last amid the latest political face-off.      
The Bangladesh Nationalist Party (BNP) and its allies declared the siege having been barred from staging demonstrations on the first anniversary of the January 5, 2014 polls boycotted by them.
The sources in the business circles said the fares of cargo transportation to and from Dhaka have already doubled to Tk 16,000 for one-way trip, as the plying of motorised vehicles is thi n on long-haul routes.
They said ships are sailing out of the seaport in Chittagong with less- than-expected consignments of exports.
Around 40 feeder vessels carry both export and import cargoes on Chittagong-Singapore and-Colombo routes with more than 1.5 million containers annually.
They said import cargoes comprising industrial raw materials and essential food products are also getting stuck-up at the port and at the Dhaka ICD.
A fear of attack and arson on the goods laden vehicles is holding back people concerned from venturing in trade transaction.
Captain AS Chowdhury, country head of Seacon, a feeder-service firm, said his vessel named 'Soul of Luck' left the port Wednesday with 800 boxes only.
 "I've missed at least 150 boxes following political programme," Captain Chowdhury told the FE about the forced business loss.
The vessel, which left for Singapore -- a journey of four days -- was expected to load 950 boxes.
Mr Chowdhury said it's so far okay, but hinted that maintaining ship schedule will be hard soon if the programme of non-stop blockade continued.
He said the slow delivery from the port yards may affect the ship planning, leading to rise in the stay time for vessels.
Harun Ar Rashid, proprietor of Habib Transport Agency, said many covered vans were playing the highways with risks of arson and other types of attacks.
There was substantial number of arsons on covered vans and lorries during the pre-polls days of last general election.
However, operators of the covered vans that carry both imports and exports between the port city and the capital, Dhaka, and its adjoining districts have raised the fares for fear factor.
Admitting the sharp rise in their fares, Mr Rashid said the shortage of vans has led to the rise of fare rates.
 "This is simply a demand-and-supply equation: less transport means high fare," said Mr Rashid, also executive president of Bangladesh Covered Vans Association.
Imran Fahim Noor, managing director at the Vertex Off-dock Logistics Services Limited, said the activities at the private container depots that handle exports have slowed down.
The slowdown takes its toll on their business.
 "We're not getting expected level of cargoes," he said.
He said only those who have urgency take risks to make shipments.
Mr Noor said they were yet to get any directive from the authorities concerned regarding cargo movement between off-dock and port with police escorts.
Anowar Alam Chowdhury, managing director of Evince Group, a leading garment-textile conglomerate, said rise in fare and stuck-up of imported raw materials at the port have knocked the sector into fresh uncertainty.
He also said this ongoing political programme is giving a bad signal to the buyers.
 "Buyers want uninterrupted supply, he does not want to remain in uncertainty," Mr Chowdhury said about the rules of the trade in the main export sector of the country.
Apprehending that the political instability might have a long-term impact on the clothing exports, he lamented that this is happening at a time when the apparel manufacturers struggling with post-Rana Plaza consequences.
However, port sources said delivery slowed down but there wasn't yet any disruption in ship scheduling.
jasimharoon@yahoo.com