Kuwait based logistics company Agility, published the 13th edition of Emerging Markets Logistics Index on Tuesday. The Index ranked Bangladesh at 39th position, one below than last edition, out of 50 of the world’s most promising emerging logistics markets – thus, highlighting its incompetence in providing domestic and international logistics opportunities. Bangladesh has been among the lowest ranked countries on the Index since 2019 and scored 4.4/10 this year and last year.
The Index ranks global emerging logistics markets on four parameters – domestic logistics opportunities, international logistics opportunities, business fundamentals and digital readiness – factors that make them attractive to logistics providers, freight forwarders, air and ocean carriers, distributors and investors.
Bangladesh scored the lowest of 3.44 (rank 44) points in business fundamentals metric. This metric takes into account the openness, robustness, fairness and strength of an emerging market’s business environment, rule of law and market independence. On the other hand, the top performance on this metric as been shown by the UAE, Malaysia, Saudi Arabia and Qatar, for 3 consecutive years. This metric has, over time, proved to be the core competence factor when it comes to the Gulf countries.
Domestic and International Logistics Opportunities:
Other weak links for Bangladesh’s ranking on the Index have been the domestic and international logistics opportunities, where Bangladesh again moved down by one position to 20th and 41st by scoring 4.99 and 4.38 respectively. The domestic logistics opportunities metric measures the performance based on its potential to sustain and develop domestic demand, while on the other hand, the international logistics opportunities measures internal and external demand for trade intensive logistics services and the capacity of individual emerging market to facilitate cross-border logistics operations. China, India and Mexico stood atop in international logistics, whereas, China, India and Indonesia ranked best for domestic logistics.
The Index introduced a new metric this year – digital readiness – which measures the spread and depth of digital skills, the strength and diversity of digital business models and the adoption of and access to online commerce. Bangladesh ranked 34th and scored 4.38 in this metric.
China, the world’s largest economy, held its spot at the top in the overall ranking with the highest overall score of 8.5, followed by India at 7.21, the UAE at 6.72 and Malaysia at 6.32.