Logistics services in Bhutan.

Bhutan logistics overview: modes, trade and gateways

Bhutan is landlocked, so ocean freight moves through gateway seaports in India and Bangladesh, then by road to and from Thimphu. Main road corridors link the capital to Kolkata in India, about 830 km away, and to Chittagong in Bangladesh, about 910 km away. Container traffic is handled at these coastal ports, while domestic cargo moves by road.

International air freight uses Paro International Airport, which is the only airport with scheduled services. Total air freight movement is small, at about 0.5 million tonne-km in 2023. Export and import values are roughly 800 million USD and 2.2 billion USD, so most trade by value moves via the regional ports and cross-border trucking.

When choosing freight forwarders in Bhutan, check their experience routing cargo through Kolkata and Chittagong, since these are the key road gateway ports. Bhutan’s logistics performance index score is 2.5, lower than the world median of 2.7, with infrastructure at 2.2 and international shipments at 2.3, so coordination and contingency planning matter.

Focus on forwarders with strong customs handling, as the LPI customs score is 2.7, close to the world median. India dominates Bhutan’s trade, taking 92% of exports and supplying 82% of imports, so a forwarder with established India corridors is useful. Membership in SAARC links Bhutan to regional trade partners such as Bangladesh and Sri Lanka, which may help with cross-border arrangements.

FCL and LCL shipping from and to Bhutan relies on road connections to seaports in neighboring countries, as Bhutan is landlocked. Containers commonly move by truck from Thimphu to gateway ports such as Kolkata (Calcutta) in India at about 832 km and roughly 11.6 hours by road, or to Chittagong in Bangladesh at about 913 km and roughly 12.4 hours.

Freight forwarders coordinate with international carriers that maintain a presence in the country. ONE lists Bhutan among its locations, while OOCL is also active in the market. These liner connections support FCL and LCL shipping from and to Bhutan through nearby regional hub ports rather than domestic seaports.

Air freight in Bhutan centers on Paro International Airport (PBH), the country’s only airport with scheduled services. There are 4 airports in total, but Paro handles international cargo movements.

Air cargo volume is low, with about 0.5 million tonne-km in 2023, so capacity is limited compared with major hubs. Air freight is most suitable for high-value or time-sensitive shipments such as broadcasting equipment, small consignments of gold, or urgent industrial parts to support Bhutan’s trade in iron alloys and other manufactured goods.

There is no rail information, so international freight to and from Bhutan relies on road connections. The country borders China and India, with frontier lengths of 477 km and 659 km. Overland trade primarily uses crossings with India, linking Bhutanese roads to the broader South Asian network.

Key road gateways connect Thimphu to Kolkata in India at about 832 km and roughly 11.6 driving hours, and to Chittagong in Bangladesh at about 913 km and 12.4 hours. These corridors carry container traffic to seaports and support flows of exports like iron alloys and cement, and imports such as refined petroleum and plastics.

Customs clearance in Bhutan operates within a system that has been part of the World Customs Organization since 2002. The country is not a member of the WTO and participates in the SAARC regional bloc.

Average applied tariffs are about 4.79%. In the 2022 Logistics Performance Index, Bhutan’s customs score was 2.7, slightly above the world median of 2.6. Shippers should provide at minimum a commercial invoice, packing list, and transport document, and work with partners familiar with SAARC trade and Indian transit procedures for gateway ports.