Bangladesh Logistics Cost Overview
Bangladesh's logistics costs represent approximately 20–25% of GDP — significantly higher than the Southeast Asian average of 12–15%. As of 2020, the average logistics cost per export container (20ft) ranges from USD 1,800 to 2,500, with inland transportation accounting for approximately 40% of the total. Inadequate infrastructure, port congestion, and complex customs procedures are the primary drivers, with Chittagong port dwell costs notably higher than competing nations.
Logistics Cost Breakdown
| Cost Item | Amount (USD) | Share | Notes |
|---|---|---|---|
| Inland transport (Dhaka→CTG) | $350–500 | 20% | Truck basis |
| Port handling & terminal | $250–350 | 15% | CTG port |
| Sea freight (CTG→Busan) | $600–900 | 35% | By route & season |
| Customs & documentation | $200–400 | 12% | Incl. C&F agent fee |
| Insurance | $50–100 | 4% | By cargo value |
| Warehouse storage | $100–200 | 8% | By dwell period |
| Other (inspection, detention) | $50–150 | 6% | Highly variable |
Sea freight is the single largest cost item, but combining inland transport and port costs brings the total to 35% of logistics expenses. This is 5–10 percentage points higher than Vietnam and Cambodia, making it a key factor undermining the price competitiveness of Bangladesh's manufacturing sector.
Inland Transportation Costs
Competitor Country Logistics Cost Comparison
| Country | Avg. Cost (USD) | Logistics/GDP | Port Dwell (days) | Notes |
|---|---|---|---|---|
| Bangladesh | $2,150 | 20–25% | 10–15 | CTG port congestion |
| Vietnam | $1,600 | 15–18% | 5–7 | Infrastructure improving |
| Cambodia | $1,900 | 18–22% | 7–10 | Sihanoukville port |
| India | $1,700 | 14–16% | 6–8 | Economies of scale |
| Myanmar | $2,300 | 22–28% | 12–18 | Poor infrastructure |
Export Logistics Process and Cost Touchpoints
While Bangladesh's logistics costs at 20–25% of GDP remain higher than competing nations, significant savings are achievable through inland waterway use, minimizing port dwell time, and direct shipment from bonded zones. Korean companies can optimize costs by understanding the CTG port-centric logistics network and partnering with local 3PL providers.