Inland Container Depots (ICDs) in Bangladesh have announced a sharp increase in export container handling charges by up to 60 percent, effective from September 1, sparking widespread concern among exporters already grappling with rising global trade pressures.
The Bangladesh Inland Container Depots Association (BICDA) issued a circular on July 15, attributing the hike to rising operational costs, currency devaluation, and inflation. The decision comes at a time when exporters, especially from the RMG sector, are preparing to face a 35 percent reciprocal tariff from the United States starting August 1.
Whatโs Changing?
According to BICDA, the export stuffing package charge for a 20-foot container will jump from Tk 6,187 to Tk 9,900, while a 40-foot container will see an increase from Tk 8,250 to Tk 13,200. Additional fees like the landing charge will rise from Tk 207 per tonne to Tk 270, and the CFS storage charge will increase from Tk 29 to Tk 45.
In 2024, ICDs handled 7.50 lakh TEUs of export containersโmore than 80 percent of which were 40-foot containers. The new charges could translate to an additional Tk 300 crore annually in logistics expenses, assuming export volumes remain stable.
BICDAโs Stand
BICDA Secretary General Md Ruhul Amin Sikder defended the increase, stating that ICD charges had remained mostly unchanged for over a decade.
โThe hike is overdue,โ he said. โEven the transport cost on the Dhaka-Chattogram highway has risen by more than Tk 20,000 in recent years, yet no one protested.โ
He insisted that the charge adjustment is marginal in the context of total export costs and is essential for the financial survival of ICD operators.
Exporters Push Back
Exporters and trade leaders disagree sharply. They argue the move will undermine Bangladeshโs global competitiveness at a time of heightened geopolitical and economic uncertainty.
Mahmud Hasan Khan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), criticized the unilateral decision. โThis is unacceptable, especially when our key sector is facing higher tariffs from the US,โ he said, adding that BGMEA will seek discussions with BICDA to review the decision.
Syed M Tanvir, a BGMEA director, pointed out that while buyers typically bear the logistics costs, exporters ultimately suffer. โBuyers will recalculate total costs, and any additional charge will be pushed back onto exporters,โ he said.
He further emphasized that Bangladesh already faces higher logistics costs due to inadequate deep seaports and frequent delays at ports and customs.
Khairul Alam Sujan, former Vice President of the Bangladesh Freight Forwarders Association (BAFFA), echoed similar concerns, saying the increase would further raise export costs, especially at a time when global buyers are already exploring alternative sourcing destinations.
Looking Ahead
With Bangladesh’s export sector under pressure from multiple frontsโtariff shocks, customs inefficiencies, and logistical delaysโthe ICD rate hike is expected to be a major point of contention in the coming weeks. Exporters are calling for urgent dialogue to reconsider or stagger the implementation of the new rates to prevent further strain on the countryโs critical foreign trade sector.
Source: The Daily Star
