Market Trends of Bangladesh Freight and Logistics Industry
This section covers the major market trends shaping the Bangladesh Freight & Logistics Market according to our research experts:
Increased shipping and inland water freight transport is driving the market
The Indo-Bangla Protocol Route and the Gangetic Plains Fairways will be developed and maintained under a three-year contract by the Inland Water Authority of India (IWAI), which will significantly boost cargo flow by the river to Bangladesh and the Northeast. To dredge the Indo-Bangla Protocol Route and maintain a minimum water depth of 2.5 meters to allow barges loaded with freight to transit from Calcutta to Bangladesh and then to the Northeast, the authorities would flog a tender worth roughly INR 200 crore (USD 24.2 Million). The inland waterways in the Gangetic Plains will be upgraded in the second phase.
An Italian shipping company will link Chittagong directly with Europe, giving Bangladesh's major export market for apparel a boost. Meanwhile, a Danish shipping company is constructing a 200,000-square-foot custom bonded warehouse in Chittagong in partnership with a local organization to ease system congestion and improve the flow of cargo into and out of Bangladesh.
While RifLine's sister company, Kalypso Compagnia di Navigazione SPA, Italy, later applied for permission from the Chittagong Port Authority (CPA) to operate the purpose-built vessels on the route, the move to introduce shipping service on the Chittagong-Italy route at the end of 2021 was initiated by Rome-based RifLine Worldwide Logistics, a freight forwarder from Italy and a client of many European buyers. As a result, the CPA gave two of its rented ships-Cape Flores and Songa Cheetah, each with a 1,200 TEU capacity-permission to operate for six months.
Increased e-commerce demand driving the logistics market in Bangladesh
Consumers can now purchase goods online with greater ease thanks to the expanding mobile finance services (MFS) market, which is helping the e-commerce sector. A report by the Asian Development Bank (ADB) on the cottage, micro, small, and medium enterprise (CMSME) industry predicts that the market will triple in size by 2023. There are currently 2,500 or so e-commerce businesses operating in the nation, and there are at least 50,000 company pages on Facebook.
The rapid uptake of the internet, advancements in logistics communication, and ongoing development of online banking and mobile financial services (MFS) have all contributed significantly to the expansion of the e-commerce industry. Additionally, the development of this industry has been fueled by the rise of the young, tech-savvy population (over 50% of the population is under 35 years old) and the middle-class and affluent population growth rate (10% per year). Bangladesh's capital city has seen the most growth in e-commerce, and young people with higher education levels are those who favor online purchasing the most. Trading their goods on Facebook helps a lot of women and youthful business owners become independent.
The expansion of online meal delivery services like HungryNaki and FoodPanda is proof that B2C websites have gained popularity in big cities. The demand for home delivery services has also increased as a result of severely congested highways and hazardous driving conditions. B2C initiatives may also be seen in Facebook-based shopping portals like Shoprbd and ShoptoBd, which let Bangladeshi consumers buy goods from popular international e-commerce destinations like the US, the UK, India, and China. C2C companies are expanding as well. The top competitors in this field are Bikroy, Ekhanei, and Clicked. The C2C market has lately undergone some consolidation as a result of the acquisitions of CellBazar by Telenor Group and playeOLX by Ekhanei.com.
The country's e-commerce industry had a difficult year in 2021 because, after experiencing significant growth in the first half of the year, the industry suffered a serious setback as a result of scams committed by several e-commerce businesses that destroyed the public's faith in the companies. In light of this, the e-commerce industry experienced a decline in the second half of 2021 after experiencing tremendous growth since the COVID-19 outbreak in the nation in March 2020. Because customers didn't trust the official banking channel, the amount of e-commerce that went through it dropped by a lot in the second half of the year.
Freight Forwarder & Logistics Market in Bangladesh Report Snapshots
- Freight Forwarder & Logistics Market in Bangladesh Market Size
- Freight Forwarder & Logistics Market in Bangladesh Market Share
- Freight Forwarder & Logistics Market in Bangladesh Market Trends
- Freight Forwarder & Logistics Market in Bangladesh Companies
- Freight Forwarder & Logistics Market in Bangladesh News
