Bangladesh : Shipping Charge Hike May Sink Garment Industry

Bangladeshi garment chiefs have warned the industry that it is being severely hurt by a sharp rise in container charges for the US and
European shipments. Personnel of the Bangladesh Garments and Manufacturers Exporters Association (BGMEA) said the recent 50 to 60 per cent hike in charges is threatening to wreck the export-oriented industry.

They are demanding urgent government action after shipping chiefs raised the cost of moving a 20-foot container to the east coast of the US to $3,400 from $2,500 and to $1,250 from $800 for European shipments.

Officials warned if the costs were passed on to customers then buyers might switch their attention to rival producers in Asia and Latin America.