Apparel Importers Beware: Chittagong Congestion Surges Following Political Unrest and Catastrophic Flooding

Apparel supply chains are facing significant disruption as the Port of Chittagong, Bangladesh's primary maritime gateway, grapples with the dual pressures of political turmoil and severe flooding. For apparel importers in North America and Europe, these challenges are likely to have far-reaching implications, particularly as they gear up for the crucial Q4 period.

In early August, at the peak of the political crisis that culminated in the resignation of Bangladeshi Prime Minister Sheikh Hasina, Splash247 reported that approximately 50 ships were waiting to berth at Chittagong. This congestion underscores the vulnerability of the port, a critical node in the global apparel industry, to political instability.

The congestion situation deteriorated further later in August due to severe flooding, which brought a new level of disruption to Bangladesh’s logistics infrastructure. 

The Loadstar reported the Dhaka-Chittagong highway, a critical artery for cargo movement to and from the port, was heavily flooded causing trucks to be stranded in traffic jams stretching up to 40 kilometers. 

This flooding paralyzed cargo transport to and from the port and contributed to the piling up of both inbound and outbound containers.

As a result of these dual crises, Mohawk Global reported that inland container depots have been overwhelmed, with some holding double the usual volume of containers. To help alleviate the pressure, the port has implemented 24/7 operations. 

Those looking to air freight as an alternative may be left disappointed as a shortage of storage space at air cargo facilities and an insufficient number of cargo flights have led to rising air freight rates out of the country. 

Chittagong Waiting Times Surge in August

The latest updates to our Port Congestion Index reflect the scale of the disruption in Chittagong. 

Average anchor times, which represent the duration vessels wait to berth, surged 77% from 2.2 days (53 hours) in July to 3.9 days (94 hours) in August. This marks a steady increase from 1.2 days (29 hours) in June and 1.0 days (24 hours) in May, and far exceeds the average waiting time of 0.8 days (19 hours) recorded across the first half of the year. 

While berth (unloading and loading) times remained relatively stable month-on-month (3.1 days in August vs. 3.0 days in July), they were still significantly above the H1 average of 2.6 days. 

On the ground, the difficulty in moving containers in and out of the port is evidenced by container dwell times more than doubling on a month-over-month basis, from an average of 6.0 days in July to 12.7 days in August.

Consequences for the Apparel Industry 

For apparel importers, these delays are a serious cause for concern. 

Bangladesh is one of the world's leading exporters of ready-made garments, and any disruption to its logistics infrastructure will undoubtedly have an impact on the availability of apparel in the North American and European markets that depend on it heading into the holiday shopping season.

The fact that disruptions have extended to the air freight sector means many importers are left with little choice but to endure the delays and hope that the deployment of additional vessels by Maersk and other carriers helps accelerate the return to normal operations and minimize delays.

This latest crisis is a stark reminder that reliance on distant production hubs comes with inherent risks that must be carefully managed, particularly in an era of escalating geopolitical tensions and extreme weather events caused by a changing climate. 

It serves as the latest lesson for apparel companies as it relates to the vulnerability of their supply networks, and is likely to cause many to reassess their supply chain strategies and accelerate the nearshoring trend that is already in motion. 

Mundra and Nhava Sheva Contain Impact of Floods

Floods and extreme weather also impacted operations in India at both Nhava Sheva and Mundra. However, the overall impact to the Indian ports’ operations across the month of August appears to have been more contained.

Despite the three day disruption, average vessel anchor times at the two ports were largely unaffected across the month, increasing by approximately 1 hour in Nhava Sheva and improving by 2 hours in Mundra compared to July levels. 

August container dwell times also remained relatively constant – increasing by a modest 3 hours in Nhava Sheva and decreasing by almost 2 days in Mundra. This data indicates the port’s resilience in returning to normal operations following the extreme weather event. 

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