The crisis in Bangladesh poses a major challenge to the global supply chain and affects nearby countries like India. This disturbance is causing delays and increased logistical costs, particularly affecting sectors like agriculture and textiles. Industry expert and owner of JBS Group of Companies, Samir J Shah, provides insights in a Guest Column to Apace Digital Cargo, discussing the current scenario, its effects on Indian exports, and an optimistic outlook that a strong economy can overcome adversities. Read here:ย
The recent events in Bangladesh can only be termed as sad. We are in a civilised era and change is a constant to be respected. The way the events have spiralled is very hurting to the economy of the country and all countries with whom they have a relationship. I refrain from touching upon any social or related issues.
The stoppage of cargoes in and out of Bangladesh will hurt all countries dealing with her. Bangladesh has been accepted as a world class manufacturer of readymade garments and many other products. The dependence of international brands on Bangladesh manufacturing is very high. The same is the case with other items of manufacture.
The Logistics service providers = Forwarders; Transporters; Carriers and many other stakeholders in both Bangladesh and partnering countries have huge financial; manpower and legal issues involved. This does not include the actual owners of the cargoes.
The effect of the turmoil will be in both geographies.ย
Exporters are already facing challenges due to a shortage of foreign exchange in Bangladesh, affecting the movement of perishable goods. Geopolitical tensions may disrupt the supply chain globally. This will distort the import-export balance which could put pressure on the Indian rupee, dragging it to fresh lows.ย
It will be weeks before we will be able to understand the depth of the damage.
It is frightening to even hazard a scope of this event.
India has a special relationship with Bangladesh which in the recent years increased the logistics dependence of Bangladesh on India. New Delhi airport was offered to Bangladeshi exporters as an export gateway. Bengaluru was added recently and the efforts of offering other locations were underway.
The proposals for road and sea transportations are also on in detailed discussions.
India was also looking at co-operation to help the North East states with their international cargo movement.ย
It will have to be seen in the coming days how the continuation of all these wonderful, mutually beneficial initiatives develops.
As the political crisis situation is not likely to get settled immediately.
- ๐๐จ๐ง๐ข๐ญ๐จ๐ซ ๐ญ๐ก๐ ๐๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง: Keep a close watch on the evolving political terrain in Bangladesh and adjust your trade strategies accordingly.
- ๐๐ง๐ ๐๐ ๐ ๐ฐ๐ข๐ญ๐ก ๐๐จ๐๐๐ฅ ๐๐๐ซ๐ญ๐ง๐๐ซ๐ฌ: Maintain open communication with your counterparts in Bangladesh, Iran, Israel to deal with any immediate disruptions.
- ๐๐๐ฅ๐ญ ๐๐ง๐ ๐๐๐๐ฌ๐ฌ๐๐ฌ๐ฌ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ๐ฌ: For those planning to start afresh export-import activities in Ira, Israel and Bangladesh then this might be a prudent time to pause and observe how these geopolitical tensions unfold.
- ๐๐ญ๐๐ฒ ๐๐ง๐๐จ๐ซ๐ฆ๐๐ ๐๐ง๐ ๐๐ ๐ข๐ฅ๐: Regularly monitor updates from reliable sources to stay ahead of potential market shifts.
- ๐๐ข๐ฌ๐ค ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ: Implement robust risk management practices to protect your business from unforeseen disruptions.
- ๐๐จ๐ฅ๐ข๐๐ฒ ๐๐๐ฏ๐จ๐๐๐๐ฒ: Engage with trade associations and government bodies to advocate for policies that mitigate the impact of these geopolitical risks on the export-import sector.
There is hope – a good economy always overrides other obstacles.
