customs brokerage, freight forwarding and truck transportation

Space Crunch in Bangladesh Caused by Weather and USA-China Trade Spat

: Transport

Bangladesh Faces Space Crunch, Escalating Rates On Sideline of USA-China Trade Spat 2018-08-06

Milgram’s agent in Bangladesh has advised us that they are facing logistical difficulties in several areas.
 
Aside from torrential rain, the resulting flooding, overall hardship and disruption caused by the annual Summer Monsoon, a space crisis has emerged from Bangladesh to North America.
 
American importers are rushing to bring in inventory ahead of the implementation of a punitive duty levy on Chinese goods brought in to their country that takes effect soon (announced previously on July 6th in a memorandum from the U.S. Trade Representative’s office).  
 
Shipping lines are giving preferential treatment to accommodate such U.S.-bound freight and are hiking rates on that lane to take advantage of the sudden surge in demand.
 
As a consequence carriers are paring down allocations to and from other regions including the Indian Subcontinent (Bangladesh included). The combination of a hike in spot rates and allocation cuts is apparently unprecedented; even with higher rates, the situation is further complicated as space is not guaranteed and containers are being rolled more frequently than before. This shipping trend is expected to remain this way for another five to six weeks.
 
The traditional annual peak season in Bangladesh runs from July to September. In any other year, space is already scarce by now (in mid-August) and only available at a premium. The pressure brought about by the rush to move Chinese cargo has created a supply chain backlog that extends to factories that are unable to deliver their goods. Consolidation warehouses cannot stuff cargo into non-existent containers and as those warehousers fill-up, it can be expected that even shippers will face challenges (if they cannot send freight down to the port, they too will have trouble coping with the stress of being unable to move their finished goods or perhaps in taking on new production).
 
Such is the situation in Bangladesh; Milgram will keep our customers informed about this and any other current events.

 

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Milgram has developed a reputation for providing the highest level of service in the fields of Customs Brokerage, International Freight Forwarding and Ground Transportation.

We strive to make things simple for our clients by doing them better, and work hard to meet and exceed our clients expectations.

Montréal514-288-2161Dorval514-695-3585Toronto905-673-1568Toronto Warehouse905-677-3997Vancouver604-821-1677Toll-Free1-888-MILGRAM (645-4726)
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