Bangladesh Freight and Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Bangladesh Freight And Logistics Market Trends and Insights

Explosive Growth of RMG and Emerging Non-RMG Exports Fueling Time-Sensitive Logistics

Ready-made garment exports reached USD 38.48 billion in 2024 and continue climbing, while non-traditional destinations added USD 6.33 billion in 2024. Knitwear and woven apparel shipments are rising in double digits, creating heavier demand for predictable transit times and compliant documentation^{[1]Md Saifuddin, “RMG Exports Cross USD 38 Billion Mark,” tbsnews.net} . Buyers in Japan, Australia, and Latin America require stricter labelling and shorter replenishment cycles, spurring investments in bonded trucking, value-added warehousing, and parcel-level tracking. As order sizes shrink and frequency rises, the Bangladesh freight and logistics market is shifting from bulk movement toward agile, time-definite services that protect margin and reputation.

Government Megaprojects (Padma Bridge, Matarbari Port) Unlocking Multimodal Corridors

Padma Bridge has halved travel times between Dhaka and the southwest, opening routes once bypassed by exporters^{[2]Tapan Biswas, “Padma Bridge Operations Company Gets Green Light,” tbsnews.net} . Policy makers expect up to 4 million new jobs over the next decade, intensifying intra-country freight flows. Matarbari deep-sea port, scheduled for 2027, will receive 100,000-plus DWT vessels, removing feeder legs that currently add extra expense to shipping costs. The link between Padma Bridge, Mongla Port, and Matarbari will gradually forge a triangle of road, rail, and maritime options, encouraging carriers to redesign networks and helping the Bangladesh freight and logistics market capture transit traffic from northeast India and Bhutan.

Bilateral and Regional Transit Pacts (BBIN, BIMSTEC) Enabling Cross-Border Through-Flows

The BBIN Motor Vehicles Agreement, supported by SASEC financing, has introduced electronic cargo tracking, integrated check posts, and streamlined documentation^{[3]Asian Development Bank, “Bangladesh SASEC Road Connectivity Report,” adb.org}. Corridor 2 now handles 65% of India-Bangladesh road trade, and a trial run using ECTS cut border dwell to three hours. Transit cargo through Chattogram and Mongla ports for Indian importers is becoming routine, positioning the country as a coastal gateway for Himalayan economies. These developments diversify revenue streams and raise service benchmarks across the Bangladesh freight and logistics market.

Digitization Push, National Single Window and Port Community Systems Slashing Dwell Times

The Customs Strategic Plan 2024-2028 targets full Single Window coverage by 2027 and end-to-end automation of declarations by 2026. Pilot implementations cut release time for compliant consignments at Chattogram to 48 hours, down from 104. AI-driven risk engines are separating low-risk shipments, while mandatory Maritime Single Window protocols introduced in 2024 harmonize data across shipping lines, agents, and terminals. Faster processing improves vessel utilization, lowers inventory buffers, and strengthens the competitiveness of the Bangladesh freight and logistics market.

Chronic Congestion on Dhaka-Chattogram Highway Increasing Transit Times

The 240 km long Dhaka-Chattogram Highway corridor handles more than 90% of external trade yet offers average speeds of 19-22 km/h. Frequent lane closures, dense mixed traffic, and limited bypasses undermine schedule reliability. As 61.65% of the load picked (tons) travels by road, long queues translate into stock-outs, overtime costs, and missed vessel connections. Expressway upgrades are planned, but land acquisition and funding gaps delay completion, constricting the medium-term growth of the Bangladesh freight and logistics market.

Shallow Draft at Chattogram Port Creating Feeder Dependence and Higher Trans-shipment Cost

Handling 3.26 million TEUs in 2024, Chattogram Port cannot berth container ships above 9.5 m draft, forcing cargo onto feeder services via Colombo or Singapore. Additional handling pushes ocean freight up by 15-25% and extends voyage time by 4-6 days. While the Bay Terminal and Matarbari projects promise relief, financing, dredging, and road linkage works must converge before direct mainline calls become routine. Until then, the Bangladesh freight and logistics market absorbs higher costs and faces eroding margins, especially for low-value garments.

Segment Analysis

By End User Industry: Manufacturing Centrality Reflects Export Orientation

Manufacturing spent USD 11.05 billion on logistics in 2024, equal to 35.78% of the Bangladesh freight and logistics market. RMG requirements dominate but are becoming more sophisticated, ranging from vendor-managed inventory to carton-level barcoding. The sector’s logistics bill is set to hit USD 13.47 billion by 2030 at a 3.28% CAGR (2025-2030), with integrated warehouse-transport bundles replacing spot trucking.

Wholesale and retail trade accounted for USD 7.88 billion, or 25.52% of the Bangladesh freight and logistics market in 2024. Digital marketplaces doubled order counts in two years, driving parcel density and reverse-logistics needs. This vertical will outpace others at 3.35% CAGR (2025-2030) as omnichannel chains open fulfillment centers near Dhaka and Chattogram. Construction and agriculture, though smaller, still require bulk inland movement of cement, steel, seeds, and perishables, demanding improved multimodal transfers and cold chain nodes.

Note: Segment shares of all individual segments available upon report purchase

By Logistics Function: CEP Segment Accelerates on E-commerce Surge

The freight transport segment contributed USD 16.52 billion in 2024, equal to 53.51% of the Bangladesh freight and logistics market. Moderate expansion toward USD 19.88 billion by 2030 reflects incremental highway upgrades and steady export flows. Road haulage represents 69.40% of the freight transport segment value because shippers continue to rely on trucking between cluster factories and ports. Manufacturing alone generates 39.36% of road freight spending, underscoring how garments anchor domestic line-haul demand.

The Courier, Express, and Parcel segment added USD 1.31 billion in 2024 and is projected to grow at a CAGR of 3.60% from 2025 to 2030. Domestic parcels dominate as of 2024, but faster 3.73% growth in international traffic is reshaping service design. E-commerce accounted for 41.73% of CEP turnover in 2024, compelling operators to improve last-mile address accuracy, real-time status alerts, and pick-up lockers. As digital buyers expect two-day delivery to Tokyo or Toronto, the Bangladesh freight and logistics market is pushing CEP providers to integrate customs data feeds, bonded warehouses, and airside trucking for seamless export fulfilment.

By Courier, Express, and Parcel: International Segment Outpaces Domestic Growth

Domestic CEP services yielded USD 0.84 billion in 2024 for a 64.27% share. Operators battle inconsistent address formats and traffic bottlenecks that slow last-mile runs. Initiatives such as geo-coded digital postcodes and two-wheeler electric fleets are improving hit rates and lowering delivery windows, making city logistics a critical differentiator within the Bangladesh freight and logistics market.

International CEP stood at USD 0.47 billion in 2024 but is forecasted to grow at a CAGR of 3.73% between 2025-2030. Direct air links to Guangzhou, Dubai, and Istanbul now allow garments, leather goods, and handicrafts to reach consumers sooner. Global integrators provide trade compliance dashboards, while local partners offer doorstep pick-ups. Customs automation, electronic advance data, and electronic duty-merchandise systems together shorten export parcel clearance, bolstering the competitive edge of Bangladesh-based sellers.

By Warehousing and Storage: Temperature-Controlled Segment Gains Momentum

Non-temperature-controlled warehouses generated USD 4.20 billion in 2024 and accounted for 91.86% of warehousing value inside the Bangladesh freight and logistics market. Most structures remain single-story sheds with manual handling and basic inventory systems. The wholesale and retail trade sector consumed 50% of this space, given the country’s growing grocery and fashion networks, while the manufacturing sector took 29.05% of the space to stage exports.

The temperature-controlled niche, at USD 0.37 billion in 2024, is gathering pace as pharmaceutical exports rise and seafood players target frozen value. The Bangladesh freight and logistics market size for this segment is forecast to expand at 3.53% CAGR (2025-2030), yet unmet demand persists, especially beyond major urban clusters. New public-private cold hubs, supported by USTDA financing, plan pallet racking, solar backup, and tele-monitoring to shrink the post-harvest loss rate.

By Freight Transport: Road Dominance Persists Amid Modal Shift Efforts

Road transport generated USD 11.47 billion in 2024, giving it a 69.40% share of the Bangladesh freight and logistics market. Despite wide usage, load efficiency is low, with trucks carrying 61.65% of the load picked (tons) but covering only 33.34% of the load moved (ton-km) in 2024, evidence of short, congested hauls. Manufacturers paid USD 4.51 billion for road freight in 2024, followed by retailers at USD 2.65 billion. Regulators are piloting weigh-in-motion, axle bans, and GPS-based tolling to lift productivity and curb overloading.

Sea and inland waterways contributed USD 4.46 billion in 2024, with 60.57% of the load moved (ton-km) while only 21.05% of the load picked (tons), confirming their efficiency. The segment will likely top USD 5.43 billion by 2030 as Matarbari and Bay Terminal add berth capacity. Rail freight transport held a minimal 1.51% market share in 2024 but offers scale economies once gauge conversion and ICD links mature. Air freight transport stood at 0.48% in 2024 yet posted the quickest 3.68% CAGR (2025-2030) outlook, buoyed by pharmaceuticals and premium knitwear. Together, these trends signal a gradual diversification of the Bangladesh freight and logistics market away from an over-road dependence.

Note: Segment shares of all individual segments available upon report purchase

By Freight Forwarding: Air Segment Grows on High-Value Cargo Demand

Sea and Inland Waterways freight forwarding amassed USD 2.74 billion in 2024, comprising 75.79% of forwarding activity in the Bangladesh freight and logistics market. Box volumes grew 6.8% despite vessel draft limits at Chattogram. Forwarders invest in feeder slot agreements and inland water trans-loading barges to stabilize schedules and mitigate tide restrictions.

Air freight forwarding earned USD 0.05 billion in 2024 but enjoys a 3.76% CAGR (2025-2030) outlook. Pharmaceuticals, technical textiles, and sample shipments need temperature logging, chain-of-custody, and warranty services unavailable in general cargo lanes. Forwarders are adding GDP-compliant containers, cool dollies, and data loggers to command premium yields. Land-road-rail forwarding under “others” totaled USD 0.83 billion in 2024 and benefits from BBIN transit rights that reduce border formalities on Dhaka–Siliguri–Kathmandu lanes.

Geography Analysis

The Dhaka-Chattogram axis forms the backbone of the Bangladesh freight and logistics market, hosting the densest warehouse clusters, freight terminals, and CEP sorting centers. Yet it also carries the country’s worst congestion, with peak-hour speeds barely 20 km/h, forcing shippers to build larger safety stocks. Bridge toll reforms, weigh-in-motion scales, and completion of the Dhaka Elevated Expressway are expected to ease bottlenecks, but short-term relief is limited.

The southeast anchors the ocean trade. Chattogram handled 3.26 million TEUs in 2024, but vessel-size restrictions and urban sprawl force truck queues on approach roads. Matarbari deep-sea port, plus the Bay Terminal reclamation, aims to double capacity and accommodate Panamax ships, giving the Bangladesh freight and logistics market a chance to become a regional trans-shipment option for northeast India, Bhutan, and Nepal. Border districts are also modernizing, with integrated check posts at Benapole and Tamabil linking customs, immigration, and quarantine under one roof, shortening document processing and encouraging road-rail multimodal solutions.