CHATTOGRAM, Apr 20: The Bangladesh Inland Container Depots Association (BICDA), the body representing 21 private-sector off-dock container depots, has increased container handling charges by 8.5% due to a fuel price hike.
BICDA Secretary General Ruhul Amin Sikder told the Daily observer on Monday, the enhanced tariff on container handling has been effective since Sunday.
In this connection, BICDA has issued a circular on Sunday. The circular confirmed that the surcharge took effect immediately, following a 15% increase in diesel prices, from Tk100 to Tk115 per litre.
The association commented that the fuel price-hike announced by the Government has significantly increased operational expenses of the private ICDs, prompting the tariff adjustment.
BICDA Secretary General Ruhul Amin Sikder said, "We have instructed all private ICDs to inform their clients and implement the revised rates from 19 April."
Industry stakeholders say the cumulative impact may exceed the stated 8.5% increase, as multiple service components within the supply chain are being affected simultaneously.
Continued increases in fuel and handling costs are steadily pushing up the overall cost of doing business in external trade.
Rising tensions in the Middle East since 28 February have pushed global shipping costs up by 25% over the past month, making business operations more expensive.
The enhancement of tariff by the private ICDs include transportation of empty containers between Chattogram Port and inland depots, haulage between Patenga Container Terminal and ICDs, and lift-on and lift-off services.
Export-related handling, such as container stuffing and Verified Gross Mass (VGM) procedures, will also be subject to the increased rates.
On the import side, delivery packages covering transportation, unloading, and final delivery from depots are included in the surcharge.
Exporters are likely to face higher overall logistics costs, which could weaken their competitiveness in international markets, particularly in price-sensitive sectors such as garments and agro-processing.
Importers may also see higher landed costs of goods, which could eventually be passed on to consumers, adding to inflationary pressure in the domestic market.
According to BGMEA sources, both Chattogram Port Authority and BICDA had increased tariffs by 41% and 44% respectively, raising the cost of doing business in the previous year. Besides, shipping lines also enhanced freight charges following the escalation of the Middle East conflict, making it very difficult for us to remain competitive in the global market.
The recent fuel price hike and tariff increase by ICDs are like the last nail in the coffin.
BGMEA opined that the tariff-hike by the private ICDs is unethical and illegal without consulting stakeholders. There should be a coordination committee where such proposals are discussed and decisions are made rationally.
Any change in their tariffs therefore has a ripple effect across the trade ecosystem.
The latest increase highlights mounting cost pressures in the sector.
Unless fuel prices stabilise, exporters and importers are likely to face sustained increases in logistics expenses, with wider implications for pricing, competitiveness, and supply chains. Earlier in January this year, BICDA has enhanced the a 20 percent increase in tariffs for export and empty container handling at the depots for a period of six months effective from January.
ICD operators threatened to suspend container handling from December 11, as users refused to pay the increased rate. ICDs later postponed the plan following assurances from the CPA regarding resolution.
There are 21 ICDs, all in private sectors, can store about 106,000 TEUs of containers, nearly double the capacity of the port's own yards, which can hold around 60,000 TEUs. They handle roughly 2.2 million containers annually, including all export shipments and empty boxes returning from abroad.
