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ICDs hike tariffs

Operating expenses rise manifold after the BM Container Depot fire
Saleh Noman
13 Aug 2022 00:00:00 | Update: 12 Aug 2022 22:25:37
ICDs hike tariffs

Following the latest fuel price hike, the private Inland Container Depots (ICDs) in Chattogram have increased the service charges, especially those run by diesel, by about 35 per cent for the handling of the containers of imported cargo.

The ICDs are also in the process of increasing the charges for export containers by 42 per cent, sources say.

The proposal to increase service charges for export containers is still subject to the consideration of stakeholders, but it could be implemented soon as well. But the tariff increase for import containers was not discussed previously with the related trade bodies and government officials, said sources.

The services that fall under the increased tariff are the transportation of import containers from port yards to depots, lift-on, transportation of containers from depot yards to delivery yards, and rent of vehicles used for loading goods.

Bangladesh Inland Container Depot Association (BICDA) issued a notification in this regard on Thursday.

There are 19 private ICDs that handle the pre-shipment process of 100 per cent of export goods and the post-shipment process of 23 per cent of imported goods through Chattogram Port.

The depot owners have increased the tariffs twice in the past eight months. Before this, ICD charges were hiked last February in the first phase.

BICDA Secretary Ruhul Amin Sikder Biplob said depot owners demanded increasing the service charges in case of both import and export containers by 42.5 per cent. “But we decided to increase it by 35 per cent in case of import cargo containers.”

The increased rate came into effect on Thursday, he said. “We will declare the new rates for export containers very soon.”

According to BICDA, the tariff of a TEU (twenty-foot equivalent unit) of import cargo container has been increased from Tk 9,504 to Tk 12,830 and in the case of 40 feet import containers, the tariff has been hiked from Tk 11,005 to Tk 14,875.

BICDA had increased the tariff by 23 per cent for both export and import containers in November last year, which came into effect in December.

According to sources, owners of ICDs will finalize the tariff for export containers after consulting with the Bangladesh Shipping Agents’ Association and Bangladesh Freight Forwarders Association.

Meanwhile, trade bodies have said that the depot owners decided to raise the charges and tariffs after discussing among themselves, but it was necessary to make the move after discussing with all stockholders.

Mahbubul Alam, president of the Chittagong Chamber of Commerce and Industry, said, “We still do not know how the tariff has been increased as they didn’t talk to us. We will review it and we will protest if we find it unreasonable.” Meanwhile, BICDA members will also decide soon on raising the charges for four other export container services — loading, inward haulage, transport vehicle fare and duty on the gross weight of goods in containers.

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