The nation ranks on the backside amongst 4 rising South Asian economies on Agility logistics index
Enterprise local weather has tugged down Bangladesh’s rank but once more to the bottom amongst 4 rising South Asian economies within the Agility Rising Markets Logistics Index 2022.
Bangladesh dropped one place to rank thirty ninth amongst 50 of the world’s most promising rising logistics markets, in response to the thirteenth version of the index unveiled on Tuesday by Agility – a Kuwait-based world logistics firm.
The nation is behind India (2nd), Pakistan (twenty seventh) and Sri Lanka (thirty third), reflecting its lack of enchancment in offering home and worldwide logistics alternatives.
Bangladesh has been languishing on the lowest place among the many 4 rising South Asian economies on the index since 2019.
The index ranked the world’s 50 main rising markets for general competitiveness primarily based on 4 metrics: home logistics alternatives, worldwide logistics alternatives, enterprise fundamentals and digital readiness – components that make them engaging to logistics suppliers, freight forwarders, air and ocean carriers, distributors and buyers.
Bangladesh’s general rating in these metrics is 4.44 out of 10 – identical because the earlier 12 months.
China, the world’s largest financial system, held its spot on the high within the general rating with the best general rating of 8.5, adopted by India, the UAE, Malaysia and Indonesia.
How Bangladesh carried out within the metrics
Bangladesh’s general efficiency was undermined by its weak efficiency in enterprise fundamentals metric, measured by the openness, robustness, equity and power of an rising market’s enterprise atmosphere, rule of legislation and market independence. The nation scored solely 3.44 and ranked forty fourth on this class.
The highest 4 rising markets when it comes to enterprise fundamentals – the UAE, Malaysia, Saudi Arabia, Qatar – have remained the identical for 3 consecutive years.
The report talked about that the enterprise fundamentals rating has emerged as a core competence and power for the Gulf nations.
The home logistics alternatives metric measures the efficiency of every rising market and its potential to maintain and develop home demand that requires aggressive logistics markets.
However, the worldwide logistics alternatives measures inner and exterior demand for commerce intensive logistics companies and the capability of particular person rising markets to facilitate cross-border logistics operations.
When it comes to each home and worldwide logistics alternatives, Bangladesh acquired deranked by one place to twentieth and forty first by scoring 4.99 and 4.38 respectively.
Powerhouse exporters China, India and Mexico topped the rankings for worldwide logistics. China, India and Indonesia ranked highest for home logistics.
The index launched a brand new metric this 12 months – digital readiness – which measures the unfold and depth of digital expertise, the power and variety of digital enterprise fashions and the adoption of and entry to on-line commerce.
Bangladesh ranked thirty fourth and scored 4.38 on this metric.
Freight charges to normalise
Other than the index rankings, the report additionally reveals a survey of commerce and logistics business professionals annually.
Roughly two-thirds of the 756 business professionals surveyed for the index consider shippers will see cargo charges come down by 12 months finish. About 80% of them expressed their hope that port bottlenecks, air capability shortages and trucking points will ease by the tip of the 12 months.
Agility Chief Govt Officer Tarek Sultan mentioned, “The business’s optimism displays the truth that rising economies are getting extra resilient and determining methods to climate provide chain disruption.”
He added, “If rising markets can get higher entry to vaccines and provides small companies a lift, they will help energy a broad, dynamic world restoration.”