ICDs announce increase in container handling charges by 8.5%

The owners of 21 private inland container depots (ICDs) have announced an 8.5 percent increase in various container handling charges, effective from April 19.

Operators of lighter vessels transporting imported cargoes from Chattogram port’s outer anchorage to different destinations on inland water routes will meet with government authorities on April 22 to discuss freight adjustments.

The Bangladesh Inland Container Depots Association (BICDA), in a circular issued on Sunday, announced the increase in six types of container handling charges at ICDs by 8.5 percent following a 15 percent rise in diesel prices, from Tk 100 to Tk 115 per litre.

The charges include empty container transportation between Chattogram port and ICD, empty container transportation between Patenga Container Terminal and ICD, empty container lift-on or lift-off, export goods stuffing package, export loaded container verified gross mass and import goods delivery package.

There are 21 privately owned ICDs located in and around the port city. Almost 93 percent of export-loaded containers are handled by ICDs before shipment through Chattogram port.

BICDA Secretary General Md Ruhul Amin Sikder said prime movers and all container handling equipment at ICDs run on diesel, with ICDs requiring over 70,000 litres of diesel per day.

“Following the diesel price hike and subsequent cost increase, there is no alternative to adjusting charges in order to maintain smooth operational activities,” Sikder said.

Currently, ICDs charge on average Tk 2,046 for each empty container transported between the port and ICDs, while the export goods stuffing package charge stands at around Tk 7,424 per 20-foot container and Tk 9,900 per 40-foot container.

Sikder noted that charges vary as ICDs individually fix rates through negotiation with clients.

Khairul Alam Suzan, former vice president of the Bangladesh Freight Forwarders Association (BAFFA), said ICDs had already increased their charges by 20 percent only four months ago.

He pointed out that Chittagong Port Authority (CPA) increased its tariffs by over 41 percent since December, adding that the cost of import and export businesses would sharply rise with the fresh hike in ICD charges.

Officials from different shipping agents opined that the newly revised ICD tariffs would adversely impact trade.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director SM Abu Tayyab expressed resentment over BICDA’s unilateral decision to raise tariffs without consulting stakeholders.

Tayyab said a government coordination committee needs to discuss the issue with stakeholders to assess the actual impact of the fuel price hike on ICD operations before any adjustment in charges.

He added that following recent hikes in port tariffs, ICD tariffs, and freight increases by shipping lines, the fresh hike by ICDs would badly hurt the already struggling readymade garment sector.

Meanwhile, the Director General of the Department of Shipping will meet with stakeholders in Dhaka on Wednesday to discuss adjusting lighter vessel freights due to the diesel price hike.

Bangladesh Water Transport Coordination Cell Convener Shafiq Ahmed said a lighter vessel requires on average 3,500 litres of diesel for a round trip from Chattogram to Dhaka.

Currently, freight for transporting cement clinker in a lighter vessel from Chattogram to Dhaka stands at Tk 550 per tonne, he said.