Bangladesh: Clothing piling up at warehouses as brands call on factories to cease making clothes & delay shipments
"Clothing piles up at Bangladesh warehouses as west cuts imports", 22 November 2022
Clothing is piling up at warehouses in Bangladesh as customers tighten belts within the US, Europe and different large markets, based on producers and authorities officers.
Manufacturers stated that orders on the earth’s largest garment exporter after China had been slowing since July due to the warfare in Ukraine and sanctions on Russia, and their influence on inflation, rates of interest and mortgages internationally.
“Everything has gone up, so the clothing budget has squeezed,” Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, informed the Financial Times. “That’s why some of the brands, some of the importers have slowed down their orders.”
Hassan stated that some retailers had requested Bangladeshi suppliers to cease making clothes or to delay shipments for as much as three months.
“That is having a huge impact because all our factories . . . have bought fabric to produce the garments and now they are having a serious crisis.”...
Hassan, the BGMEA president, stated that within the newest slowdown, retailers weren’t cancelling orders outright. Instead they have been asking for reductions or factoring warehouse fees into what they paid producers whose clothes they might not promote instantly.
He added that the business had requested the Bangladesh Bank, the nation’s central financial institution, to press lenders to defer suppliers’ mortgage funds in order that factories may give precedence to paying wages and utility payments.
Power cuts have brought about additional issues at producers. “Energy is a problem and because of that, a very large section of the industry is going through terrible months,” stated Syed Naved Husain, chief govt of Beximco, considered one of Bangladesh’s largest firms...