Weekly Supply Chain News Update: July First Week, 2024 (WK-28)

Local News (Bangladesh)

1. Quota Protests Disrupt Transport:

Anti-quota protests in Dhaka have significantly disrupted rail and road transport. The "Bangla Blockade" led to blockages at key intersections, causing severe traffic congestion and delays in the movement of goods and people. This disruption has had a cascading effect on the supply chain, affecting timely deliveries and increasing transportation costs.

2. EPB Delays Export Data Release:

The Export Promotion Bureau (EPB) of Bangladesh has delayed the release of export data for June 2024. This delay follows a significant discrepancy revealed by Bangladesh Bank, which showed that actual exports were nearly $14 billion below previously reported figures. The mismatch has raised concerns about data accuracy and its impact on economic planning and trade policies.

3. GRSE Signs Deal for Advanced Tug:

Garden Reach Shipbuilders and Engineers (GRSE) of India has signed a deal to supply an advanced ocean-going tug to the Bangladesh Navy. This $21 million investment aims to enhance Bangladesh's maritime capabilities, supporting both defense and commercial shipping operations. This is the second such deal within a week, indicating strengthening defense and trade relations between the two countries.

4. Bangladesh to Export Rice:

Food Minister Sadhan Chandra Majumder announced that Bangladesh aims to become a rice-exporting country in the future. This shift from being an importer to an exporter of rice signifies improvements in agricultural productivity and food security. It also highlights the potential for Bangladesh to enhance its position in the global agricultural supply chain.

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International News

1. Foxconn's Hiring Practices Under Scrutiny:

Indian labor officials visited Foxconn's iPhone manufacturing plant to question executives about the company's hiring practices. This visit is part of broader efforts to ensure compliance with labor laws and improve working conditions in the electronics supply chain.

2. Global Trade Trends:

The United Nations Conference on Trade and Development (UNCTAD) reported positive global trade trends in the first quarter of 2024. The value of trade in goods increased by around 1%, driven by exports from China, India, and the United States. However, geopolitical tensions and rising shipping costs pose challenges to sustained growth.

3. Port of Hamburg Named Best Global Seaport:

The Port of Hamburg has been named the "Best Global Seaport" at the Asian Freight, Logistics and Supply Chain Awards for the third time. This recognition underscores the port's efficiency and its critical role in facilitating international trade, particularly between Europe and Asia.

4. Peak Shipping Season Outlook:

As the peak shipping season begins, container shipping and global transport services are gearing up for increased demand. Despite the usual seasonal uptick, the outlook is tempered by potential geopolitical issues and rising shipping costs, which could impact the efficiency and cost-effectiveness of global supply chains.

5. MediaTek and Qualcomm Face Pressure from Huawei:

MediaTek and Qualcomm are experiencing competitive pressure due to Huawei's resurgence in the market. This dynamic is reshaping the semiconductor supply chain, with potential implications for global electronics manufacturing and trade.

Conclusion

The first week of July 2024 has seen significant developments in both local and international supply chains. In Bangladesh, disruptions due to protests and data discrepancies have posed challenges, while strategic defense deals and agricultural advancements offer promising prospects. Internationally, positive trade trends are counterbalanced by geopolitical and economic uncertainties, highlighting the complex and interconnected nature of global supply chains.