Bangladesh Garment Factories Reopen after Sheikh Hasina’s Flight

Garment factory workers break for lunch, in Dhaka on August 7, 2024 (AFP)
Garment factory workers break for lunch, in Dhaka on August 7, 2024 (AFP)
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Bangladesh Garment Factories Reopen after Sheikh Hasina’s Flight

Garment factory workers break for lunch, in Dhaka on August 7, 2024 (AFP)
Garment factory workers break for lunch, in Dhaka on August 7, 2024 (AFP)

Garment factories in Bangladesh, forecast to account for 90% of the country's exports, reopened on Wednesday hoping to swiftly resume full operations after production was disrupted by violent protests that ousted Prime Minister Sheikh Hasina this week.

Hasina resigned and fled the country on Monday after around 300 people were killed and thousands injured in a crackdown on student-led protests since July.

Garment and textile factories which supply major western brands such as H&M, Zara and Carrefour had been forced to shut under curfews imposed during the unrest.

"We lost a total of four days, it is too early to make an estimate of the loss. There was little physical damage to factories," Miran Ali, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told Reuters.

"I am hopeful that in the next few days, we will see complete normalization," he said. "I'm confident our buyers will stand by our side."

He added that H&M, which sources garments from about 1,000 factories in Bangladesh, had already said it would not seek discounts due to the delays. The world's second largest fashion retailer had said it was concerned about developments in Bangladesh.

At a factory belonging to apparel maker Urmi Garments in Dhaka, the mainly female employees were back operating sewing machines.

"We went out of work, sitting idle at home. We were scared. We are poor people depending on daily wages and overtime. If we sit back home, how can we run our families?" 38-year old Razia Begum, an employee at the factory, told Reuters.

Factory manager Emdadul Haq said the factory had lost 228,000 pieces of production worth $107,000. In all, Urmi, which counts H&M, Japan's Uniqlo and Britain's Marks and Spencer among its clients, had lost about $2.2 million across three units, he said.

The International Monetary Fund expects the ready-made garments industry will account for 90% of Bangladesh's $55 billion annual exports in the financial year 2024.

Bangladesh was the third-largest exporter of clothing in the world last year, after China and the European Union, according to the World Trade Organization. Nearly half of its exports in the July 2023-May 2024 period were to the EU, worth $21.65 billion.



Maersk Sees Sustained Global Demand, but at Slower Pace

FILE PHOTO: A view of the sign for A.P. Moller-Maersk outside their offices in Copenhagen, Denmark, January 25, 2024. REUTERS/Tom Little/File Photo
FILE PHOTO: A view of the sign for A.P. Moller-Maersk outside their offices in Copenhagen, Denmark, January 25, 2024. REUTERS/Tom Little/File Photo
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Maersk Sees Sustained Global Demand, but at Slower Pace

FILE PHOTO: A view of the sign for A.P. Moller-Maersk outside their offices in Copenhagen, Denmark, January 25, 2024. REUTERS/Tom Little/File Photo
FILE PHOTO: A view of the sign for A.P. Moller-Maersk outside their offices in Copenhagen, Denmark, January 25, 2024. REUTERS/Tom Little/File Photo

Shipping company Maersk on Wednesday said the global demand for container transport was expected to continue to grow in the next few quarters albeit at a slower pace as substantial market risks persisted.

The Danish company also confirmed preliminary second-quarter earnings released last week when it raised its outlook for the third time since May, citing higher freight rates due to the Red Sea crisis and solid container shipping demand.

Maersk, viewed as a barometer of world trade, on Wednesday said global container demand was estimated to have grown 5%-7% in the second quarter, boosted by strong Chinese exports which grew 10% compared to a year ago, among other factors, Reuters reported.

"Global container demand growth is expected to remain positive in coming quarters, but likely at a slower pace," the company said in its earnings report.

Maersk last week also cautioned that prospects for the fourth quarter were uncertain.

"A healthy, albeit cooling labor market, and wage gains are expected to continue to support US consumers. Declining consumer confidence and savings, however, are clouds at the horizon," Maersk said on Wednesday.
For the full year, it expects global container market volumes to increase by 4-6%.

Shipping disruptions caused by Houthi militants' attacks on vessels in the Red Sea were expected to last at least until the end of the year, Maersk has said.

The attacks have drawn US and British retaliatory strikes and disrupted global trade but Maersk and rivals have benefited from longer sailing times and soaring freight rates as ships are rerouted around Africa.