RMG on overdrive to meet deadlines

In Tongi, the Masco Group’s knit composite factory is abuzz with activity across its 253 production lines, starkly different from the past week’s quiet. Workers are fully engaged, knitting garments to meet tight deadlines. 

A visit to Masco’s facilities on Thursday revealed that all 14 production units were operating at maximum capacity to fulfil orders for their buyers. The company has extended working hours and will continue production next Friday, a regular day off.

The Masco Group isn’t the only one ramping up production. As winter approaches in the West, demand from Bangladesh’s key export markets is growing.

Major suppliers such as Ha-meem Group, Mondol Group, DBL Group, Pacific Jeans, Standard Group, Palmal Group, and Windy Group are also working overtime to make up for last week’s production losses.

Major groups such as AL Muslim, Sharmin, Sparrow, Pacific and Windy kept their factories open on Friday (26 July), cancelling the holiday.

Windy Group Managing Director Mesbah Uddin Khan told TBS that they are producing 150,000 to 200,000 woven garments daily. 

“To recover from production losses due to unrest and shutdowns, we have extended our production to 10-13 hours a day, up from 8-10 hours before the closure,” he said, adding that this intense schedule will be maintained for another three to four weeks to clear the production backlog. 

Windy Group, which operates nine production units including a washing plant, generates about $200 million in annual exports and employs around 15,000 people, said Mesbah Uddin, also a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

‘A race against deadline‘

Sparrow Group Managing Director Shovon Islam said a US buyer requested air freight for their 180,000-piece order of various woven garments, agreeing to cover the cost but demanding a 15% discount. The shipment deadline is 29 July.

“We can produce up to 85,000 pieces by the deadline. We’ve asked for a one-week extension, but they are unwilling to grant it,” he told TBS.

Another major US buyer has granted a one-week extension for their 100,000-piece order of bottoms and loungewear, with the same deadline.

To meet these deadlines, the group’s 15,400 workers are putting in extra hours across their five production facilities.

“Typically, our buyers do not permit us to exceed 60 hours of work per week, but the current situation requires us to push beyond these limits, even running production on Fridays, which is normally a weekend,” Shovon Islam said.

Sparrow produces 2.5 million pieces of various woven products annually, valued at $275 million last year. This year, they aim to reach the $300 million export mark, according to Shovon Islam, who is also a BGMEA director.

The group also owns a joint venture factory in Jordan, which exports about $110 million annually and employs 2,600 people, including 2,200 Bangladeshis.

Shovon expressed concern that the week-long internet blackout could lead to a loss of around 20% of orders for the next summer season, as buyers’ confidence was hurt.

AL Muslim Group also kept their factories running on Friday.

Mohammad Salim, head of marketing and merchandising at AL Muslim Group, said, “Our factories have been running in full swing since Friday morning. The group employs around 28,000 workers across its three production units, almost all of whom were present.” 

Internet blackout dealt a hard blow to RMG

Industry insiders said increased workloads have led some apparel factories, liaison offices, and buying houses to implement longer working hours for merchandising and management teams. These employees are also being asked to work from home during off-peak hours and on weekends.

They have also sought assistance from customs and port authorities to clear backlogs caused by the internet disruption and speed up shipments.

Speaking to TBS on condition of anonymity, the head of business development at a major multinational buying house said they are working an additional 5-6 hours to make up for the disruption that occurred last week due to an internet blackout.

“We have informed all of their buyers about the internet blackout situation and requested a seven-day extension for shipments. About 50% of our buyers have already agreed to the extension, but some have not,” he said.

This buying house conducts approximately $70 million in annual business with 23 factories for the UK and South Korean markets. 

“Around 20% of summer orders remain unconfirmed, despite verbal commitments from buyers, who were expected to confirm by last Friday to Monday,” said the official, expressing concern that potential business may be lost due to communication failures during the internet blackout. 

Hefty air freight cost looms

The buying house official also said that despite efforts, Bangladeshi apparel exporters may incur significant air freight costs for about 10% of their goods scheduled for shipment this month. 

These goods are valued at approximately $300 million, with air freight costs estimated between $100 million and $120 million, he added. 

Exporters negotiate deferred shipments 

Masco Group employs about 23,000 people across its 14 units, including three dyeing, printing, and embroidery facilities.

During a visit by TBS on Thursday, Md Sharafat Hussain Sohail, senior manager of Merchandising at Masco Group, said, “Seventeen buyers have agreed to accept deferred shipments for up to a week due to circumstances beyond our control.”

Overtime has been extended by two hours daily and could be further increased, depending on the curfew, he said.

“We are doing our best and need cooperation from customs and port authorities to clear the backlog and expedite shipments,” Sohail added.

A senior official from a European brand, speaking anonymously, confirmed that they have granted their suppliers an additional 4 to 7 days to complete pending orders, considering the situation. 

“We have also offered support to suppliers as needed and noted that no air freight would be required due to the extended deadlines,” said the brand representative, adding that all pending correspondence was cleared by Thursday afternoon.

Ctg port back to full-scale operations

Chattogram Port, the country’s primary trade gateway, has resumed full operations after a six-day hiatus, with container loading, unloading, and delivery back in full swing.

During a visit to the port on Thursday, TBS observed that prime movers, trucks, and covered vans were active at all 12 gates. 

Containers were being loaded and unloaded across all yards at the three terminals: General Cargo Berth (GCB), Chittagong Container Terminal (CCT), and New Mooring Container Terminal (NCT).

Officials said as the port operations were closed since 18 July, there is an increased pressure to clear the backlogs.

According to official data, the port handles 3,500-4,500 twenty-foot equivalent units (TEUs) of containers every day. 

Some 3,000 TEUs of containers were delivered on Wednesday (24 July) and the number was expected to cross 4,500 TEUs by Friday.

Chittagong Port Authority Secretary Md Omar Faruk told TBS, “All activities of the Chattogram Port are now completely normal. Due to reduced deliveries, the extra containers accumulated in the yards will be cleared within next week.”