Dhaka airport warehouse overfilled with imported garment raw material
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Sunday
January 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
SUNDAY, JANUARY 29, 2023
Dhaka airport warehouse overfilled with imported garment raw material

RMG

Jebun Nesa Alo
25 April, 2020, 09:10 pm
Last modified: 25 April, 2020, 10:36 pm

Related News

  • Challenging time waiting for RMG
  • Holiday trips within China surge after lifting of Covid curbs
  • India launches world’s 1st intranasal Covid vaccine
  • US CDC still looking at potential stroke risk from Pfizer bivalent Covid shot
  • China says Covid deaths down by nearly 80 percent

Dhaka airport warehouse overfilled with imported garment raw material

BGMEA seeks exemption from demurrage

Jebun Nesa Alo
25 April, 2020, 09:10 pm
Last modified: 25 April, 2020, 10:36 pm
Dhaka airport warehouse overfilled with imported garment raw material

The cargo warehouse at Hazrat Shahjalal International Airport in Dhaka has become overfilled with imported garment raw material because importers have stopped taking delivery since March due to a halt in production.

A total of 2,033 tonnes of imported raw material was lying+ undelivered in the warehouse until April 20. But the warehouse has a storage capacity of 800 tonnes, thus creating a problem for Biman Bangladesh Airlines – the authority in charge of maintaining the warehouse.

Biman says that a large portion of the undelivered raw material was imported by garment factories.

Meanwhile, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought a waiver on the demurrage being incurred for keeping the raw material in the warehouse for an extended period.

BGMEA President Rubana Huq, who was also unable to take delivery of raw material imported for her factories, sent a letter to Biman on April 7, requesting that the demurrage be waived.

Usually, cargo importers get three days to keep their raw material in the warehouse free of cost. Demurrage becomes applicable if they cannot take delivery of the goods within this period.

Biman initially charges Tk25 per unit for 10 days after the three-day period ends. Then it increases the charge to Tk100 for the next 10 days, and then to Tk300 for the 21 days after that. 

Although passenger flights have been suspended since the last week of March to curb the spread of coronavirus, cargo transportation has remained normal. 

When contacted, Md Mokabbir Hossain, managing director of Biman, said only delivery of imported raw material used in the treatment of coronavirus is being taken regularly.

He added that in April, the total amount of imported cargo was 1,682 tonnes, of which 1,616 tonnes – mostly medical equipment – were delivered.

In the letter to Biman, the BGMEA said 1,110 garment factories have lost export orders worth $3.02 billion so far since the Covid-19 outbreak. 

The huge number of order cancellations has plunged the entire garment industry into a severe crisis. Moreover, production at most garment factories has been halted due to the countrywide shutdown.

Citing the example of China, the RMG association said the country had waived airport cargo charges to help businesses. 

The consequence of undelivered garment raw material is also reflected in the fall of export cargo that Biman experienced in April. 

In the first 10 days of April, export through air-cargo was 403 tonnes –down by 80 percent from the usual export trend before the coronavirus outbreak. 

Biman would see cargo intended for export reach 200 tonnes every day before the Covid-19 crisis, according to the company.

Over 80 percent of around 4,500 apparel factories have announced layoffs at their units after the shutdown was imposed, according to factory owners and labour leaders. They declared layoffs to reduce cost. 

Garment workers have become outraged by the layoffs, and have come on to the streets in protest, ignoring social distancing rules. 

To handle the situation, the government last week directed the Bangladesh Bank not to provide funds under incentive package of Tk5,000 crore to the export-oriented factories that have announced layoffs. 

The government formed the Tk5,000-crore fund to facilitate coronavirus-affected export-oriented industries so that workers in these sectors do not lose their jobs. The owners can receive loans at just 2 percent service charge, and pay wages to their workers for three months.

Economy / Top News

RMG / raw materials / Hazrat Shahjalal International Airport / Warehouse / COVID-19 / Coronavirus

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Getting gas to India will be even more costly than laying this pipe to China.Photographer: Andrey Rudakov/Bloomberg
    Russia can't replace the energy market Putin broke
  • Ex-MD Mehmood Hossain rejoining National Bank
    Ex-MD Mehmood Hossain rejoining National Bank
  • Photo: UNB
    AL won't run away, rather will continue developing Bangladesh: PM in Rajshahi

MOST VIEWED

  • Photo: Sustainable Apparel Coalition
    Sustainable Apparel Coalition partners with Bangladesh Apparel Exchange for fourth edition of Sustainable Apparel Forum
  • BGMEA calls on PVH to buy more high-end apparels from Bangladesh
    BGMEA calls on PVH to buy more high-end apparels from Bangladesh
  • Photo: Courtesy
    10 Bangladeshi companies participating at Texworld USA 2023
  • TBS Sketch
    Entrepreneurs should focus on upskilling manpower 
  • Sketch: TBS
    The German Due Diligence Act: Are we ready?
  • Sketch: TBS
    What should be the management strategy of our apparel industry in 2023

Related News

  • Challenging time waiting for RMG
  • Holiday trips within China surge after lifting of Covid curbs
  • India launches world’s 1st intranasal Covid vaccine
  • US CDC still looking at potential stroke risk from Pfizer bivalent Covid shot
  • China says Covid deaths down by nearly 80 percent

Features

Nandita Sharmin's journey to give organic skincare a new identity

Nandita Sharmin's journey to give organic skincare a new identity

7h | Mode
Illustration: TBS

'The silver lining is that the worst is sort of behind us': Hamid Rashid, UN economist

10h | Panorama
Photo: Bloomberg

BuzzFeed and AI are a match made in fad city

9h | Panorama
Snipe in flight. Photo: Enam Ul Haque

Baikka Beel: 'A world where snipe work late'

1d | Panorama

More Videos from TBS

Sarika Sabrin is waiting for a good film

Sarika Sabrin is waiting for a good film

31m | TBS Entertainment
Take your football game to the next level at Next Level academy

Take your football game to the next level at Next Level academy

1h | TBS SPORTS
“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

“Investments risky without consistent policy, reliable data”- SK Bashir Uddin

3h | TBS Round Table
What does Shahrukh has in his 770 million dollar property?

What does Shahrukh has in his 770 million dollar property?

23h | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

3
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

4
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

5
Bapex calls candidates for job test 9 years after advert!
Bangladesh

Bapex calls candidates for job test 9 years after advert!

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]