Bangladesh Freight and Logistics Market Size (2024 - 2029)

The logistics industry in Bangladesh is experiencing significant growth, with its market size expanding rapidly due to the crucial role it plays in the country's economy and foreign trade. The sector's expansion is further fueled by the burgeoning e-commerce industry and substantial investments in logistics companies. Despite challenges such as increased freight forwarding fees, which have impacted local businesses, the industry continues to thrive, supported by a robust network of freight forwarders and the strategic management of port operations.

Market Size of Bangladesh Freight and Logistics Industry

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Bangladesh Freight and Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 6.50 %
Market Concentration Low

Major Players

Bangladesh Freight and Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Bangladesh Freight & Logistics Market Analysis

The size of the Bangladesh Freight and Logistics market is USD 28.7 billion in the current year and is anticipated to register a CAGR of over 6.5% during the forecast period.

  • The economy of Bangladesh is supported invisibly by the freight forwarding industry. The entire supply chain management would be like a car without an engine in the freight and logistics industry. As per recent research, effective logistics could boost Bangladesh's exports by 20%, according to a session on logistic discourse held by the American Chamber of Commerce in Bangladesh (AmCham). Currently, more than 1,100 BAFFA members help the country's exports to and imports from abroad.
  • The nation's foreign trade will top USD 100 billion before it graduates as an LDC (Least Developed Country). Around the world, container ports solely function as terminal operators, not as storage and delivery yards. Contrarily, due to a large number of trucks and laborers entering the port each day, Chattogram and Mongla took on the duty of keeping import containers and facilitating distribution from within the port, which resulted in congestion and a security risk. Since all exports are now kept in Inland Container Depots (ICD) outside the port, Chattogram port congestion has been somewhat reduced.
  • In Bangladesh, one of the industries that are expanding quickly is logistics. The e-commerce industry now has more opportunities because of its rapid expansion. This reality has been strengthened over the past few years as several logistics companies have raised substantial sums of money. The most recent round of funding for Paperfly came from Indian Ecom Express and totaled USD 12 million.
  • Other significant local players in the sector include Delivery Tiger, eCourier, Pathao Courier, and ShopUp's REDx. We are witnessing completely new growth this year. Lalamove and Delhivery, two international logistics companies, have entered Bangladesh.
  • The Bangladesh Freight Forwarders Association (BAFFA) increased freight forwarding fees with effect from 1 September 2022. This represents a staggering 57% increase in freight forwarding fees and will place a greater burden on Bangladeshi firms. According to sources in the industry, this decision, which BAFFA made in response to the recent increase in gasoline prices, has been a major setback for the nation's enterprises, particularly the garment industry, as it puts them in danger of losing market share due to an increase in production costs.

Bangladesh Freight & Logistics Industry Segmentation

Freight management is defined as the process of controlling and executing a cost-effective procedure for goods delivery, while Logistics management can be defined as the comprehensive process of acquiring, storing, and transporting resources to their final destination.

A complete background analysis of the Bangladesh Freight and Logistics Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report. Bangladesh Freight and Logistics Market are segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Functions) and by End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, Forestry, Construction, Distributive Trade, Healthcare and Pharmaceutical, and Others End Users (Chemicals, Telecommunications, etc.)). The report offers market size and forecasts for Bangladesh Freight & Logistics market in value (USD billion) for all the above segments.

By Function
Freight Transport
Road
Shipping and Inland Water
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Other Functions
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Construction
Distributive Trade (Wholesale and Retail)
Healthcare and Pharmaceutical
Others End Users (Chemicals, Telecommunications, etc.)
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Bangladesh Freight and Logistics Market Size Summary

The logistics industry in Bangladesh plays a crucial role in supporting the nation's economy, acting as the backbone of supply chain management. The sector is experiencing rapid growth, driven by the expansion of e-commerce and significant investments in logistics companies. This growth is further bolstered by the increasing demand for efficient logistics solutions to enhance export capabilities. The industry is characterized by a mix of local and international players, with companies like Bolloré Logistics, DHL International GmbH, and Agility Logistics operating alongside numerous domestic firms. The market is relatively fragmented, with over a thousand local and around twenty international logistics and freight forwarding companies contributing to its dynamics. The development of infrastructure, such as new warehouses and improved transportation routes, is expected to support the industry's expansion and address challenges like congestion and high logistics costs.

Bangladesh's logistics sector is also witnessing advancements in technology and financial services, which are facilitating the growth of e-commerce. The rise of mobile financial services and online banking has made it easier for consumers to shop online, contributing to the proliferation of B2C and C2C platforms. Despite facing challenges such as increased freight forwarding fees and past setbacks in consumer trust, the industry continues to evolve. International companies are increasingly forming joint ventures with local firms to navigate the market's complexities. The government's efforts to enhance inland waterways and direct shipping routes to Europe are expected to further boost cargo flow and support the logistics industry's growth trajectory in the coming years.

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Bangladesh Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Market Opportunities

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products and Services

      5. 1.3.5 Degree of Competition

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Government Regulations and Initiatives

    6. 1.6 Technological Trends

    7. 1.7 Insights on the e-commerce Industry

    8. 1.8 Insights on the Proposed Railway Development Strategy

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Function

      1. 2.1.1 Freight Transport

        1. 2.1.1.1 Road

        2. 2.1.1.2 Shipping and Inland Water

        3. 2.1.1.3 Air

        4. 2.1.1.4 Rail

      2. 2.1.2 Freight Forwarding

      3. 2.1.3 Warehousing

      4. 2.1.4 Value-added Services and Other Functions

    2. 2.2 By End User

      1. 2.2.1 Manufacturing and Automotive

      2. 2.2.2 Oil and Gas, Mining, and Quarrying

      3. 2.2.3 Construction

      4. 2.2.4 Distributive Trade (Wholesale and Retail)

      5. 2.2.5 Healthcare and Pharmaceutical

      6. 2.2.6 Others End Users (Chemicals, Telecommunications, etc.)

Bangladesh Freight and Logistics Market Size FAQs

The Bangladesh Freight and Logistics Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)

Bolloré Logistics, DHL International GmbH, 3i Logistics Group, A.H.Khan & Co and Agility Logistics are the major companies operating in the Bangladesh Freight and Logistics Market.

Logistics Industry in Bangladesh Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)