Off-docks increase container handling charges by 9.85%, others seek adjustment

Inland Container Depots (ICDs), which handle 100% of the country’s containerised export cargo and 65% of import items, have increased the container handling charges by 9.85% as fuel surcharge following the latest hike in fuel prices.

Sector insiders fear that the rise in logistics costs will further erode Bangladesh’s global competitiveness in import-export trade, which is already under strain from higher freight rates and crises linked to the ongoing conflict in the Middle East.

Following the government’s 17.4% increase in diesel prices, effective from 21 September, Bangladesh Inland Container Depots Association (BICDA) issued a notice asking its members to inform their respective clients about the revised charges from 21 September.

The additional cost will be applicable for empty container transportation and haulage charges to and from Chattogram Port, ICDs and Patenga Container Terminal, empty container lift-on or lift-off charges, export goods stuffing and handling package charges, export loaded container VGM charges and import goods delivery package charges, read the notice.

BICDA Secretary General Ruhul Amin Sikder told the Daily Sun that the 9.85% increase was necessary to offset higher operational costs following the 17.4% diesel price hike.

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Fuel prices hiked by Tk20 a litre

“There is no alternative but to increase charges to keep the operations running smoothly,” he said.

Earlier, BICDA increased the outbound cargo and container handling tariff by 8.5% at 21 depots from April, sparking widespread resentment among exporters and trade bodies.

Meanwhile, the Chattogram port’s berth, ship-handling and terminal operators have sought an adjustment of their rates to tackle the impact of the latest fuel price hike.

In a letter to the Chattogram Port Authority (CPA) chairman on Monday, Fazle Ekram Chowdhury, president of the Berth Operators, Ship Handling Operators and Terminal Operators Owners Association, said diesel cost was Tk80 a litre when the tender was submitted on 19 January in 2022. The price has now risen to Tk135, a 69% increase.

“The situation is highly unusual. As a result, our member berth operators are finding it extremely difficult to continue berth operations while dealing with the financial pressure,” he wrote.

The association said the CPA was well aware that increased fuel costs had already been adjusted across different sectors of the country.

“As container handling operations are entirely dependent on transportation, we request you to take immediate and necessary measures to increase the rates by adjusting with the current fuel price hike,” the letter said.

Notably, the government raised the prices of all four major petroleum products by Tk20 a litre, effective from 21 September. Diesel now costs Tk135 a litre, while kerosene, petrol and octane cost Tk155, Tk 160 and Tk165 respectively.