Bangladesh's inland bulk cargo sector seeks digital overhaul amid structural inefficiencies

Bangladesh's inland bulk cargo sector is struggling with fragmented information, broker dependence and a lack of digital coordination, raising costs across key supply chains.

The sector transports large volumes of sand, stone, soil, coal and other bulk materials used in infrastructure, housing, manufacturing and port activities.

River transport remains relatively cost-effective, but the market largely operates through informal networks.

Cargo owners seeking vessels often depend on local brokers or agents, while vessel owners rely on personal contacts to find cargo.

Without a common platform, information on vessel availability, capacity, routes and prevailing freight rates remains scattered.

As a result, similar vessels on the same route can command different freight rates depending on demand, seasonality, availability and intermediary commissions.

Industry estimates suggest that intermediary dependence and other inefficiencies can add around 8% to 20% to the cost of some trips, although this is an estimated market inefficiency rather than a direct financial loss.

Information gap at the centre

Unlike some developed logistics markets, Bangladesh lacks a central digital system bringing together vessel registration, capacity, location, trip history and live availability for inland bulk cargo transport.

This information gap creates an imbalance between cargo owners and vessel operators, making it difficult to compare options or determine whether quoted freight rates reflect prevailing market conditions.

The problem also affects vessel utilisation, particularly when operators struggle to secure return cargo, industry participants say.

"One of the biggest problems in Bangladesh's inland waterway logistics sector is the lack of information. The absence of direct information flow between vessel owners and buyers creates dependence on intermediaries," said Hasnain Haque Ejaaz, CEO of logistics technology platform ShipConex.

The company is developing a digital coordination platform aimed at addressing the gap.

Director General of Shipping Commodore Shafiul Bari welcomed the initiative, saying the lighter vessel market had long been affected by syndication.

"After we introduced digital lighter vessel management software, the syndicate was broken and users started benefiting from the system," he said.

Bari said the government could work with the company to formulate a separate regulatory framework for digital logistics platforms, if necessary.

"Through collaboration, we can develop separate rules to help such platforms operate effectively and modernise the inland logistics system, making it easier and more affordable to access," he added.

ShipConex seeks to connect cargo and vessels

ShipConex plans to bring vessel registration, trip verification, real-time tracking and market-based pricing information under a single digital system.

"We are not trying to dismantle the existing business structure. Our objective is to organise information and create a transparent, data-driven market," Ejaaz said.

A platform that matches cargo demand with available vessels could reduce search and waiting times, improve vessel utilisation and make freight pricing more transparent.

For industries dependent on bulk river transport, greater predictability could also help reduce logistics costs and improve project planning.

The World Bank has previously identified delays, weak intermodal connectivity and logistics inefficiencies as factors contributing to higher transportation and trade costs in Bangladesh.

Digital model faces implementation challenges

However, stakeholders caution that putting the market online alone will not resolve its structural problems.

"A functioning digital coordination system would require reliable and regularly updated vessel data, participation from vessel owners and cargo buyers, regulatory coordination and secure payment and transaction mechanisms," said Forkan Ahmed, owner of a bulkhead.

"The challenge is particularly significant in a market where informal relationships and brokers have traditionally played a central role," he added.

Still, the emergence of platforms such as ShipConex points to a possible shift in Bangladesh's inland bulk cargo market from fragmented, relationship-based coordination towards a more transparent system built around shared data and direct connections between cargo and vessel operators.