Buyers concerned over internet speed, shipment delays, port congestion

International brands, buyers, and retailers have pointed out three primary concerns during a meeting with Bangladeshi suppliers – slow internet speed, timely shipment of garments, and container congestion at Chattogram port.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) convened a meeting at its Uttara office in Dhaka on Monday (29 July) to gather feedback on the issues arising in the third week of July due to the quota reform movement.

During this period, internet services were fully suspended, mobile data was reinstated after 10 days, and Chattogram port experienced near-total shutdown for five days.

Buyers expressed their concerns, noting that internet speeds have yet to return to normal despite the restoration of services. The slow internet speed is hindering their operations as they cannot attach documents for order confirmations and submit necessary paperwork for shipment and payments.

While no official statements were made by representatives of the buyers and brands, TBS spoke with at least four buyers who confirmed they would neither cancel orders nor demand discounts, recognising that the situation was beyond the suppliers' control.

The buyers urged garment exporters to ensure timely shipment of goods and to engage with government officials to restore high-speed, uninterrupted internet and broadband services to facilitate smooth communication with their headquarters.

A country manager of a leading brand, wishing anonymity, told TBS that everyone has to work together to rebuild the country's image to continue the business as internet outages affected that adversely.

Global officials have expressed dissatisfaction with the government's explanation regarding internet blackouts during student protests, he added. 

Only three brand representatives – H&M, M&S, and Bestseller – attended the buyers' forum meeting, despite the forum having over 50 members. 

Sources said concerns about protests in Uttara, as reported through their social media network, caused hesitation among other members to attend the meeting.

Businesses struggle

The head of business development at a buying house told TBS that they have a $25 million business deal with an Indian buyer and goods were shipped on 12-13 July through Beanpole land port. 

"Now we are struggling to send documents due to slow internet speeds," he said, adding that the issue affects many exporters facing similar problems with internet speed.

Meanwhile, a leading apparel exporter said he has plans to meet with top officials of two major US brands next week as they had commitment to place more orders for the next summer season.

"However, now they are reluctant to talk about these orders as they are concerned about supply chain disruptions further," the exporter added.

The entrepreneur hopes that he will be able to manage them if he talks with them in person.

'Country's image not questioned yet'

Following the meeting, BGMEA President SM Mannan Kochi said buyers urged them to engage with the relevant minister to enhance internet quality and ensure uninterrupted connectivity. 

The buyers were concerned about the impact of internet outages during the protests, which disrupted their communication with global offices. 

However, Kochi noted that buyers have not questioned the country's image to do business with. He added that they remain interested in continuing collaboration in the future.

BGMEA President said that retailers and brands have assured they will not request discounts, air shipments, or cancellations of work orders due to the recent violence and production stoppages.

H&M Regional Manager Ziaur Rahman told TBS that the company will not impose any discounts or cancellations for shipment delays resulting from the student protests, as these were beyond the exporters' control. 

BGMEA President mentioned that the disruptions led to approximately Tk7,400 crore in production losses, Tk11,050 crore in wage losses, and Tk3,000 crore in losses for dyeing, finishing, and backward linkage industries.

Bangladesh on average exports apparels worth $160 million daily, according to the BGMEA. The internet disruption that started from the night of 18 July has caused the sector $740 million loss, according to the association. Exports were suspended from the next day due to the blackout.

Official figures said around 150 people have been killed due to the violence from the quota reform movement. However, media reports suggest that the actual death toll may be at least 200, including students and children.

Bangladesh's garment shipments fell 5.2% to $33.04 billion in the July-May period of FY24 compared to the same period a year prior, according to data from the Bangladesh Bank.

According to revised export data, total exports declined by 4.28% year-on-year to $40.73 billion in July 2023-May 2024, down from $42.55 billion in the first eleven months of FY23, said Bangladesh Bank Monetary Policy Statement July-December 2024.