From Monday, exporters will face a new financial burden as private inland container depots (ICDs) in Chattogram raise export container handling charges. The increase, which could reach up to 44 percent, is expected to add Tk 20 crore to the monthly costs for garment exporters, totaling Tk 240 crore annually. This comes at a time when the country’s ready-made garment (RMG) sector is already grappling with several challenges.
Depot owners argue that the 21 private ICDs in Chattogram, which handle around 750,000 export containers annually, are compelled to raise rates due to rising operating costs. However, the move has sparked intense opposition from garment sector representatives, who argue that it adds undue financial pressure.
BGMEA (Bangladesh Garment Manufacturers and Exporters Association) Director Rakibul Alam Chowdhury voiced his concerns to The Daily Times of Bangladesh, stating, “Chattogram Port Authority held several rounds of discussions with stakeholders before considering any tariff adjustments, but no increase has been made. ICD owners, however, raised charges unilaterally without consulting BGMEA or exporters. This is unacceptable, and we demand that the decision be reversed.”
On July 15, the Bangladesh Inland Container Depots Association (BICDA) issued a notice confirming the rate hikes. The charges for export-laden and empty containers were increased, while import container handling fees remain unchanged.
Specifically, handling a 20-foot export container will now cost Tk 9,900, up from Tk 6,187. Charges for 40-foot and 40-foot high-cube containers will rise from Tk 8,250 to Tk 13,200, while a new rate of Tk 14,900 has been introduced for 40-foot high-cube and 45-foot containers. Moreover, transport costs for empty containers have also increased, with 20-foot empty containers now costing Tk 2,500, up from Tk 1,705, and larger containers rising from Tk 3,410 to Tk 4,000.
Although the export handling charges have increased, BICDA has kept import handling charges unchanged at Tk 12,605 for 20-foot containers and Tk 14,557 for 40-foot containers. These rates were last fixed in August 2022, following a rise in diesel prices by the government.
In response to the proposed hike, BGMEA President Mahmud Hasan Khan wrote to the BICDA President on July 21, urging the association to withdraw the increase. He argued that raising charges without prior consultation violates established procedures and disrupts the trade environment.
Garment factory owners, who are already grappling with higher production costs, worker unrest, rising raw material prices, and high interest rates, have warned that the new charges will only exacerbate their struggle to keep factories operational.
BICDA President Khalilur Rahman defended the hike, stating in an August 24 letter that the increase was essential for ensuring the survival of ICD operations. BICDA Secretary General Ruhul Amin Sikder further explained, “ICD operating costs have risen significantly, and we’ve been absorbing these costs for years. This adjustment is necessary. Furthermore, freight forwarders often charge more than our prescribed rates, so the claim that this hike will cause a crisis for the export sector is inaccurate.”
Currently, the 21 private ICDs in Chattogram handle approximately 93 percent of Bangladesh’s exports, including 83 percent of RMG goods, and nearly 20 percent of containerized imports. Over 80 percent of goods exported through Chattogram Port pass through these ICDs before being shipped abroad.
