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Controversy over ICD charge hike

Controversy over ICD charge hike
File Photo: Zakir Hossain/TIMES
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Export and empty container handling charges at 21 private inland container depots (ICDs) in Chattogram have been increased by 20 per cent following a meeting between ICD owners and key stakeholders at the Chattogram Port Building on 1 January.

The decision comes after months of controversy over unilateral tariff hikes imposed by depot owners without approval from the Tariff Committee of the Ministry of Shipping, triggering strong opposition from exporters, particularly the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

According to meeting participants, the revised charges will be implemented once the meeting minutes are signed. ICD owners claim the increase will remain effective for six months, although the Chattogram Port Authority (CPA) says the duration cannot be confirmed until the official resolution is issued.

Background of the dispute

The dispute began on September 1, 2025, when ICD owners raised export and empty container handling charges by around 44 percent without obtaining clearance from the government’s tariff committee. While import container handling charges remained unchanged, the hike sparked widespread criticism from exporters and logistics stakeholders.

In response to the increase, the High Court issued a rule questioning the legality of the additional charges. Angered by the court move, ICD owners announced a work stoppage, threatening to suspend export container and empty container handling from December 11, raising fears of a major disruption to the country’s export supply chain.

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Amid the escalating standoff, the Chattogram Port Authority convened an emergency meeting on December 10, after which ICD owners agreed to suspend their planned work stoppage for one month based on assurances from the port authority. This led to the January 1 meeting, where a compromise decision was reached.

ICD owners’ position

Ruhul Amin, secretary general of the ICD owners’ association, Bangladesh Inland Container Depots Association (BICDA), told Times of Bangladesh that the charges for export and empty container handling would be increased by 20 percent for six months.

“The new tariff will take effect once the meeting minutes are signed. It may be implemented from Sunday, January 4,” he said.

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However, Ruhul Amin expressed dissatisfaction with the compromise. “We are not satisfied with a 20 percent hike. Our operational costs cannot be adjusted unless charges are increased by at least 60 percent,” he said, adding that ICD owners had accepted the decision in the greater interest of maintaining operational continuity.

He also said the chairman of the Chattogram Port Authority had assured ICD operators that ICD tariffs would be reviewed and determined through an international consulting agency within the next six months.

Port authority’s response

Chattogram Port Authority Secretary Md Omar Faruk confirmed that the January 1 meeting decided on a 20 percent increase in export and empty container handling charges at ICDs.

However, he noted that whether the increase would remain valid for six months could only be confirmed after the official meeting resolution is published.

Previously, the port authority and the Ministry of Shipping had repeatedly stated that ICD owners do not have the authority to unilaterally revise tariffs, as ICD charges fall under the jurisdiction of the ministry’s Tariff Committee.

Despite CPA instructions to stop collecting the increased charges, depot owners continued to impose the higher rates, prompting the High Court’s intervention.

Revised charges

Under the earlier increase introduced on September 1, charges for export containers rose from Tk 6,187 to Tk 9,900 for 20-foot containers and from Tk8,250 to Tk13,200 for 40-foot containers. Empty container handling charges were raised from Tk1,705 to Tk2,500 for 20-foot units and from Tk3,410 to Tk4,000 for 40-foot containers.

Under the latest decision, the applicable ICD charges will be increased by an additional 20 percent over the previously approved rates.

The 21 private ICDs in Chattogram play a critical role in Bangladesh’s export logistics, handling about 93 percent of the country’s containerised exports, including nearly 83 percent of ready-made garment shipments. They also manage around 20 percent of containerised imports and a significant volume of empty containers.

According to ICD operators, export cargo from across the country is transported by trucks and covered vans to these depots, where goods are stuffed into containers before being delivered to the port in line with vessel schedules. On average, around 2,200 TEUs of export containers are transported daily from ICDs to Chattogram Port.

The Chattogram Port Authority notes that although ICDs are privately owned, they function as an integral part of the off-dock port system. Under the 2016 ICD Policy, ICD tariffs must be determined through a committee comprising representatives of shippers, consignees, main line operators (MLOs), shipping agents, and freight forwarders, leaving no scope for unilateral tariff decisions.

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