Bangladesh

Current status

Bangladesh faces severe supply chain disruption risk with 157 critical and high-severity events in the last 30 days, including military force deployment, chemical weapons incidents, and bombings concentrated in key commercial centers like Dhaka and Chittagong. The security situation has deteriorated rapidly, with 88 critical events representing an acute escalation from the country's already poor structural governance indicators. Manufacturing and export operations are under immediate threat from civil unrest and violence targeting major industrial hubs.

Supply chain impact

• Textile and garment buyers globally face immediate sourcing disruption as violence affects Dhaka and Chittagong, which house the majority of Bangladesh's $40+ billion ready-made garment industry serving major Western retailers.
• Chittagong Port, handling over 80% of Bangladesh's trade volume, is experiencing operational constraints due to security incidents, potentially delaying leather goods, jute, and textile shipments to key markets in the US, EU, and Asia.
• Labor-intensive manufacturing sectors face workforce disruptions as arrests and civil unrest spread across industrial zones in Dhaka, Chittagong, and Khulna, affecting production schedules for just-in-time supply chains.
• Alternative sourcing from Vietnam, India, and Cambodia may see increased demand and pricing pressure as buyers seek to diversify away from Bangladesh's deteriorating operating environment.
• Agricultural exports including jute and processed foods face logistics bottlenecks as domestic transportation networks are disrupted by widespread security operations.

Watch points

• Monitor Chittagong Port operational status and any formal shipping advisories from major carriers, as sustained port disruptions would force immediate supply chain rerouting.
• Track escalation of violence in key industrial districts including Savar, Gazipur, and Narayanganj where major garment factories and export processing zones operate.
• Watch for international buyer security advisories or evacuation of foreign quality control and sourcing personnel, which would signal broader supply chain withdrawal from Bangladesh operations.