RMG export order cancellation, suspension race close to $1.5b
Collected
The worthiness of RMG export orders cancelled or placed on hold by global buyers as a result of worldwide coronavirus outbreak neared $1.5 billion till Sunday, based on the Bangladesh Garment Manufacturers and Exporters Association data.
The BGMEA data showed a total of just one 1,089 factories informed the trade body till Sunday about order cancellation or shipment delay notices that they had received from the buyers for export orders involving $1.49 billion.
Exporters said that these were getting order cancelation or shipment delay notices from buyers atlanta divorce attorneys hour as most of the fashion retailers had shut their stores in Europe and THE UNITED STATES as a result of coronavirus outbreak.
BGMEA president Rubana Huq said that that it had been not the entire picture.
She said that they prepared the data compiling the info received from only 347 factories and many exporters were yet to send their data to the trade body.
Md Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, feared that Bangladesh might lose $6-7 billion of RMG exports because of the outbreak of coronavirus worldwide.
‘The other countries on the globe will require at least two months to avoid the epidemic as China, where in fact the virus started first in December last year, took more than 8 weeks to support the outbreak,’ he said.
Already many European countries including Italy, France and Spain have announced nationwide lockdowns to contain the outbreak of coronavirus and the retailers in Europe also closed down their stores in lots of countries, he said.
As well UNITED STATES buyers shut their stores as the united states announced a lockdown in many of its states, Fazlul said.
‘Considering the situation, we are able to presume that the consumers of Europe and America wouldn't normally buy garments for next two months and buyers would need to reduce their import orders for just two months. Now, it is a very easy equation that Bangladesh’s export loss to the united states and Europe would stand at $6-7 billion in the two months,’ he said.
Many Europe including Italy, Spain and France declared nationwide lockdowns to lessen the spread of coronavirus and major brands in the economical bloc, including Primark and Inditex, shut their stores and asked Bangladeshi suppliers to carry shipment of ready garments.
Recently, major retailers in North America like Nike, Under Armour, Lululemon Athletica, Lands End, Columbia Sportswear and Gap announced closure or reduction in store hours of most outlets in america and Canada amid the rise in the quantity of coronavirus cases in the countries.
Source: https://www.newagebd.net
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