Bangladesh‘s apparel exporters are urging the government to move quickly with an emergency support package after floods snarled operations at Chattogram Port, warning that prolonged logistics disruptions could further weaken an export sector already showing signs of losing ground to regional rivals.
The appeal comes as these exporters navigate one of their toughest competitive environments in years, amid sinking orders resulting in garment factory closures and mass layoffs in recent months. Outbound shipments of apparel grew just 0.89 percent in 2025, according to World Trade Organization data, marking the slowest pace among Asia’s major apparel-producing nations.
The slowdown has fueled concerns that Bangladesh is starting to lose market share after decades of dominating global apparel sourcing through its combination of low costs and manufacturing scale.
On Sunday, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA) and Chattogram Chamber of Commerce and Industry (CCCI) submitted a joint letter to the country’s shipping ministry calling for immediate measures to ease mounting port congestion and prevent additional financial losses.
Heavy rain between July 5-8 caused severe flooding at several container yards within Chattogram Port, as well as around local highways and at nearby private inland container depots. The flooding disrupted cargo movement by slowing truck movements and delaying container deliveries, leaving both importers and exporters struggling to move cargo through the gateway.
Among the delayed exports included garments, home textiles, leather goods and pharmaceuticals, raising the prospect of order cancellations and financial penalties for exporters already fighting to hold onto buyers. Imports like cotton, yarn, fabric, industrial raw materials, chemicals and food products faced degradation risk due to being stock at the port.
The apparel industry lobbyists list of requests included immediate restoration of road and rail connectivity to the port; the formation of a special committee to assess losses; temporary waivers on demurrage, detention and storage charges; the implementation of fast-track customs clearance for raw materials and essential goods; and low-interest refinancing for affected businesses.
The organizations also called on the shipping ministry to instate a longer-term “national trade continuity framework” to keep trade moving during future floods and disasters.
The letter was sent in response to a notice issued by the Chattogram Port Authority (CPA) on July 10, in which the agency formally denied any liability for damage to cargo caused by the flooding.
Citing government regulations, the CPA said any damage caused by the flooding constitutes an “Act of God,” thus making the authority immune from compensation claims arising from natural disasters.
“Natural disasters cannot automatically absolve the port of responsibility,” CCCI president Mohammad Amirul Haque told Bangladeshi publication The Daily Star before the trade groups sent the letter. “The authority earns around Tk 6,000 crore ($486.8 million) in annual revenue, yet it has failed to build adequate sheds or develop effective disaster preparedness to protect cargo.”
In the days since, the shipping ministry has not publicly announced whether it would engage with the trade groups on any of their proposed measures.
Bangladesh apparel exports outpaced by Vietnam, Cambodia
The port flooding and the back-and-forth comes at a delicate moment for Bangladesh’s apparel industry. According to the recent WTO data, Bangladesh exported $38.8 billion worth of garments in 2025, up just 0.89 percent from $38.5 billion a year earlier.
While the south Asian country remains the second-largest exporter of apparel worldwide, its market share sank from 7 percent to 6.8 percent in the year’s span.
Conversely, Vietnam’s global share rose from 6.2 percent to 6.5 percent, off 10.5 percent export growth to $37.5 billion. Cambodia registered the fastest expansion among leading exporters at 16.9 percent to $11.6 billion, bringing its market share to 2 percent.
Thus far in 2026, the pressure is intensifying as less apparel is flowing from Bangladesh to its top export markets.
According to the U.S. Office of Textiles and Apparel (OTEXA), Bangladesh’s garment exports to the U.S. fell 8.1 percent year-on-year to $3.25 billion during the January-May period. However, the drop outperformed the overall U.S. apparel import market, which contracted by 9.3 percent.
New Eurostat data shows that Bangladeshi apparel exports to the EU fell 18.9 percent in the first five months of the year, nearly double the bloc’s overall import decline of 10 percent.
Local media reports in May indicated that H&M is gradually reducing orders from more than half a dozen factories in Bangladesh as the fast-fashion giant pivots some of its apparel supply chain to India.
Former BKMEA president Fazlul Haque told Bangladeshi publication The Business Standard that China and Vietnam had pursued aggressive marketing over the past year after the Trump administration imposed its sweeping tariffs on global trade partners.
“Bangladesh could not match that effort,” Haque said.
