The Bangladesh Inland Container Depot Association (BICDA) has announced an increase in container handling charges for export goods by 20 to 50 per cent.
The depot owners said that the decision will be effective from September 1. They claim that the cost of importing and maintaining equipment, wages of workers and the depreciation of the taka against the dollar, along with operating costs, have increased significantly. For these reasons, they have decided to increase the charges. However, there has been a storm of objections in the business community.
The BICDA notification said that the handling charge for a 20-foot export container has been increased from Tk 6,187 to Tk 9,900, for a 40-foot container, the charge has been increased from Tk 8,250 to Tk 13,200 and for a 45-foot high-cube container, the charge has been increased from Tk 8,250 to Tk 14,900. The charge has also been increased for empty containers. At the same time, additional charges have been set for several services including lift-on/lift-off, documentation, ground rent.
BICDA Secretary General Ruhul Amin Sikder said, ‘There has been no change in export handling charges since 2016. However, infrastructure costs have increased several times in the last few years. The ongoing high inflation, depreciation of the rupee and increase in bank interest rates have increased costs. We are increasing these charges to survive.’
Bangladesh Shipping Agents Association Chairman Syed Mohammad Arif said, ‘The business of depots has expanded, from 38 types of products to 65 types of products are now being handled. When business is growing, there is no logic in increasing the charges. If the charges are increased, the burden will fall on importers and exporters. This will increase the price of the product and the pressure on the general public will increase.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Sakif Ahmed Salam said, "The charges have been increased without consulting the exporters. Taking such a unilateral decision is not a good sign. Therefore, we can undoubtedly say that BICDA's decision is unacceptable. The garment industry is already facing several technical difficulties with the 35 percent tariff in the US. In the meantime, this increase in charges will put pressure on our trade."
Chittagong Customs Agents Association President Saiful Islam said, "Exporters are already affected by the US tariff. This decision will further increase the crisis. Most of the products exported from this country are in the garment sector. If they cannot do business, it will have a negative impact on the national economy. So we want a decision to be taken considering that no one is affected."
19 private depots in Chittagong handle 93 percent of the country's export containers and 65 types of import goods. These depots handle about 22 lakh containers annually.
