CMA CGM offers discount vouchers to fill ships out of India as exports dip
A growing cargo crunch seems to be prompting container lines serving Indian trades to devise ...
XPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS LINE: DEMAND PATTERNS LINE: LANDSCAPELINE: CONF CALL STARTSDSV: UNTOUCHABLEEXPD: NOT AS BULLISH AS PREVIOUSLYFWRD: SPECULATIVE RALLY MAERSK: INTEGRATED LOGISTICS WIN MAERSK: TRUMP TRADEKNIN: THE SLIDELINE: DEBUT AAPL: ASIA CAPEXDHL: THE HANGOVERXPO: ELECTION DAY RALLY
XPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS LINE: DEMAND PATTERNS LINE: LANDSCAPELINE: CONF CALL STARTSDSV: UNTOUCHABLEEXPD: NOT AS BULLISH AS PREVIOUSLYFWRD: SPECULATIVE RALLY MAERSK: INTEGRATED LOGISTICS WIN MAERSK: TRUMP TRADEKNIN: THE SLIDELINE: DEBUT AAPL: ASIA CAPEXDHL: THE HANGOVERXPO: ELECTION DAY RALLY
Indian apparel industry stakeholders appear to have tasted some early incremental gains from the turmoil plaguing Bangladesh trade after the recent political upheaval that dethroned the government.
According to the latest data, India’s ready-made garment (RMG) exports, by value, in August surged 12% year on year, the highest monthly expansion in the fiscal year that began in April.
“While the global garment sourcing [sector] is realigning, we are ready to play a significant role,” said Sudhir Sekhri, chairman of India’s Apparel Export Promotion Council (AEPC).
“The recent surge in RMG exports is a testament to the increasing trust global brands have started reposing on India-made products.”
The AEPC chief said the higher growth was especially significant as it had come in a challenging environment, squeezed by the persistent Red Sea crisis and increased logistics costs.
“There is a need for the right push and support from the government, especially when the world is looking for options to switch its sourcing from conventional destinations, due to the changing geopolitical considerations,” Mr Sekhri added.
In contrast, Bangladesh’s export trade, which historically thrives on RMG verticals, seems to have slowed after the domestic crisis hit the business community badly.
According to available data, Chittagong Port has seen fewer export containers in the past two months, a sign that RMG exports were under stress, as global importers remained wary of shouldering the risk of unpredictable production schedules and delivery commitments from the political tension.
Bangladesh’s main cargo gateway saw containerised exports in September dip to 75,603 teu from 78,146 teu in August. However, import flow ticked up, to 117,402 teu from 114,708 teu, as origin points seem to have cleared some input goods order backlogs that had to be suspended earlier, data shows.
“The unrest has had a crippling effect on the Bangladesh RMG industry,” a shipping analyst in Dhaka told The Loadstar. “Violent protests by workers have forced the closure of large swathes of production for months. It will take time to recover.”
Back in India, there is a general view that local exporters – battling a slowdown in demand – must exploit the opportunities from potential trade shifts from Bangladesh, despite the inherent competitive challenges in the absence of duty-free access in major markets.
AEPC and other fellow representative bodies, supported by the government, have been trying to break into new target markets, with some results. Indian RMG exports to Japan, Korea, Australia, Mauritius and Norway recorded significant gains in fiscal Q1, according to industry data.
India’s overall merchandise exports took a hard beating in August, down 9% year on year, after a moderate fall in July, so any additional RMG demand becomes a boost for the country, especially as trade challenges heighten due to the tense West Asia situation.
You can contact the writer at [email protected].
Check out this week’s News in Brief podcast on the fallout from the US port strike
Comment on this article