Freight forwarders oppose 20-80 per cent increase in container handling charges

Freight forwarders oppose 20–80pc hike in container charges

Freight forwarders in Bangladesh have strongly opposed a sharp increase in container handling charges, warning that the move will severely impact the export trade. 

The Bangladesh Inland Container Depots Association (BICDA) has reportedly decided to raise charges by 20 percent to 80 percent for export containers, with the new rates set to take effect in September.

The protest was made through a press conference held at the Dhaka Reporters Unity on Saturday, organized by the general members of the Bangladesh Freight Forwarders Association (BAFA). 

The conference was presided over by Abrarur Alam, with other key members, including Adnan Mohammad Iqbal, Abul Hasan Shamsul Haq, Mahfuz Raihan, and Anwar Hossain Milan, also in attendance.

Abrarur Alam stated that solutions to existing problems could be found through improving efficiency, such as reducing cargo unloading times, using modern equipment, and addressing labor shortages—not by increasing costs. 

He urged BICDA to withdraw the decision, especially in light of the current economic downturn. 

He also mentioned that the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has already expressed solidarity with the freight forwarders by writing a letter to the Chittagong Port Authority, and other exporters also support the demand for a rollback of the new charges.

According to the freight forwarders, the new rates will significantly increase the cost of doing business. The charge for a 20-foot export container will jump from Tk 6,187 to Tk 9,900, while a 40-foot container will cost Tk 13,200 instead of Tk 8,250. The charge for a 45-foot high-cube container will rise from Tk 8,250 to Tk 14,900. 

Additionally, costs for almost all other services, including empty container handling, lift-on/lift-off, documentation, and ground rent, will also be increased.