Freight forwarders oppose decision to increase cargo handling charges

The country’s freight forwarders on Saturday called for reviewing the decision to increase the cargo handling charges at ports, as they believe this would take a serious toll on the country’s economy, hampering exports and imports.

Protesting the move to increase such charges taken by the container depot operators, they also said the decision would make a major negative impact on foreign exchange earnings and may result in losing foreign buyers of local merchandise.

They mentioned container handling charges to increase by 20 to 50 per cent on average, while for some terms it would increase by up to 80 per cent. The decision would be effective from September 1.

General members of the Bangladesh Freight Forwarders Association (BAFFA) came up with the call at a press conference held at the Sagar-Runi Auditorium of the Dhaka Reporters Unity (DRU) in the city’s Segunbagicha area.

BAFFA members, including  Abrarul Alam,  Adnan MD Iqbal,  Munim Mahfuz,  Anwar Hossain Milon,   Abul Hasnat,  Shamsul Haque, and Tariqul Islam Tarek, were present among others.

Briefing the reports, Mr Abrarul Alam said the Bangladesh Inland Container Depot Association (BICDA) has recently announced an unreasonable increase of 20–50 per cent in container handling charges for export goods.

“This decision has sparked major concerns for the country’s export-oriented economy during this critical period,” said Mr Alam, adding that the decision came amid a situation which is marked by ongoing global economic downturn, sluggish local economic and political crisis in the country, the US policy of imposing additional tariffs, and the overall market turmoil.

He explained that as per the BICDA decision, the charges have been increased from Tk 6,187 to Tk 9,900 for a 20-foot export container, from Tk 8,250 to Tk 13,200 for a 40-foot container, and from Tk 8,250 to Tk 14,900 for a 45-foot high-cube container.

“In addition, additional charges have been imposed on almost all services, including empty containers, lift-on or lift-off, documentation and ground rent,” he said.

The BAFFA members feared that the decision would have a negative impact, including a setback for exporters, foreign currency earnings, and the loss of foreign buyers.

They made a three-point demand, including immediate reconsideration of the decision and the government’s intervention.

They also called for undertaking measures to improve services, increase transparency and efficiency in operations and manage depots instead of increasing tariffs.

It is notable that, scrapping the previous committee on various allegations, the government has appointed an administrator to BAFFA. A freight forwarder acts as an intermediary in global trade, coordinating with carriers like ships, planes, and trucks to move goods efficiently. They manage logistics such as rate negotiation, booking, documentation, customs clearance, and insurance, ensuring cost-effective delivery from origin to destination. There are currently around 1200 members of BAFFA.

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