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Severe Congestion at Chittagong Port Disrupts Bangladesh s Garment Supply Chain Amid Trade Tensions

Severe Congestion at Chittagong Port Disrupts Bangladesh s Garment Supply Chain Amid Trade Tensions

Logistics News
19-Jun-2025
Source: JCtrans

In recent days, Bangladesh's main container gateway, Chittagong Port, has been facing severe congestion and vessel delays, while key stakeholders in the country’s garment sector are grappling with multiple supply chain challenges.


According to local industry sources, the port's container yards are filled with import containers after customs clearance was significantly slowed during the recent extended Eid-ul-Adha holiday.


Sources report that although port terminals remained operational during the June 5–14 holiday period, the number of importers collecting goods dropped sharply. Daily container pickups fell below 250 units, compared to the usual 1,000 per day. "The drastic decline in container pickups has created a severe surplus in capacity," said a source at a local freight company. "It may take several days for the freight volume to return to normal."


The congestion has led to long delays for vessels—including container ships—awaiting berth windows, severely disrupting sailing schedules. For example, the Singapore-flagged vessel Sinar Sorong, which departed from Singapore and was scheduled to dock on June 6, only berthed on June 17—an unprecedented 10-day delay. With current charter rates surging, this has caused significant additional costs for shipping lines.


Under normal circumstances, vessels at Chittagong Port face waiting times of one to two days. As of yesterday, sources said about 100 vessels were queued at the berths and outer anchorage awaiting clearance.


Industry insiders expect additional pressure on port terminals as factories resume operations after the holiday, unleashing a wave of backlogged export orders.


Meanwhile, amid tariff disputes, new trade data suggest that U.S. buyers are increasingly shifting apparel sourcing from China to Bangladesh.


According to updated figures from the Office of Textiles and Apparel (OTEXA), Bangladesh’s garment exports to the U.S. rose nearly 30% year-on-year between January and April, reaching $3 billion. In contrast, China’s export volume to the U.S. remained largely flat. Other Asian markets also showed strong growth: Vietnam up 16%, India up 20%, and Pakistan also up 20%.


This expansion in trade for Bangladesh’s industry is notable, given the mounting pressure on its container supply chains in recent months, partly due to India’s new restrictions on transshipment traffic—a reflection of ongoing bilateral tensions.


Last month, New Delhi imposed new trade restrictions on Bangladesh, limiting goods to enter the Indian market only through Kolkata and Nava Sheva ports. This has created serious logistical challenges for Dhaka, which exports around $700 million worth of garments to India annually.


The move is seen as retaliation against Bangladesh’s own restrictions on Indian yarn exports—a tit-for-tat response after India withdrew a 2020 policy that had allowed transshipment of third-country goods from Bangladesh via Indian airports, particularly New Delhi.

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