Inland container depots raise container handling charges 23pc, following fuel price-hike

Owners of private inland container depots have raised the container-handling charges by 23 per cent following the hike in diesel price and other costs associated with managing the export-import cargoes.

The owners of the 18 off-docks in Bangladesh in a meeting Tuesday finalised the rate of raise in their charges, to a stiff opposition from exporters.

The association of private ICDs wants the hike with retrospective effect from November 4, 2021, meeting sources said.

They said the rate was finalised with consent of the members in the meeting at the association office in Chattogram that lasted till 7.30 pm.

Currently, off-docks in the Chattogram seaport area handle all export goods and 38 types of imports.

However, textile and apparel exporters strongly opposed the proposed hike out of fear of a fresh blow to export-oriented sectors.

Talking to the FE, president of Bangladesh Inland Container Depots Association (BICDA) Nurul Qayyum Khan said private off-dock owners got into difficulties following diesel-price hike.

"All of the segments of our operations, excepting documentation and ground rate, are directly related to diesel," he said.

Cost of operation of ICD has increased over the years and they are already facing financial problems, he added.

Secretary of BICDA Md Ruhul Amin Sikder said associated costs with the hike in diesel increased, forcing the ICD owners to review their charges.

He said the investors in ICDs are not getting expected returns on their billions of taka invested.

"Although all of the costs, including that of transportation and labour, increased, charges for ICD remained unchanged," he added.

Tariff committee, formed as per an off-dock policy of the Ministry of Shipping in 2016, has yet to play any major roll in revising tariffs of ICDs in line with the increased cost of operations, he said.

First vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Syed Nazrul Islam said they would not accept the hike as it would affect the sector severely.

He said the off-docks should charge the port, not exporters, for their services as they are providing necessary services to the exporters on behalf of government.

"We request the ICD owners not to hike cost as impact of pandemic on RMG sector has yet to be remedied," he said.

Other expenditures in Bangladesh are higher than that of the competitor countries, causing difficulties in beating them at price, he rued.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem expressed his dismay over correlation between hike in diesel prices and ICD changes.

"I wonder how much diesel off-docks need to operate export- import containers."

According to the ICD policy of the Ministry of Shipping, the private operators should charge the buyers who nominated them for handling goods instead of exporters.

ICDs are taking some dual charges in the name of landing charge along with labour charges, he pointed out.

Without stakeholder consultation, such unilateral hike in ICD charges would not be accepted by the exporters, he said in disapproving of the move.

Last year, the off-docks hiked their charges by 15 per cent.

Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon strongly opposes the proposal for hike, terming it 'illogical'.

"There is no logic to increase charges by 30 per cent as diesel price increased 15 per cent. They have to assess cost of fuel consumption before raising the charges," he said.

Handling cost of containers is higher in Bangladesh compared to that in competitor countries and it would jump further, affecting export competitiveness of the country, he added.

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