44% hike in export container handling fees effective from tomorrow amid concerns from businesses
Limit Ctg Port tariff hike to 10%, businesses tell shipping adviser
The new handling fees fixed by the Bangladesh Inland Container Depot Association (Bicda) for private inland container depots (ICDs) will come into effect from tomorrow (1 September), raising rates for export cargo by up to 44%, amid concerns from businesses that the hike may put exporters at risk.
The new charge will be applicable for empty containers as well – a change expected to drive up costs for exporters, especially in the garment sector.
As per the new tariff structure, export cargo handling fees will rise by 36% to 44%, while empty container handling charges will increase by up to 31.8%.
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Charges for import container handling, however, will remain unchanged.
"Our operating costs have surged over the last few years. We had no alternative but to revise the charges," Bicda Secretary General Ruhul Amin Sikder told The Business Standard.
Meanwhile, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called the hike unreasonable and unjustified amid a global slowdown in apparel demand.
BGMEA Director Rakibul Alam Chowdhury demanded an immediate withdrawal of the revised rates. "ICDs are already struggling with capacity issues. Increasing charges without stakeholder consultation will worsen the export crisis."
The new rates will increase the handling fees for a 20-foot export container from Tk6,187 to Tk9,900. For a 40-foot container, it will jump from Tk8,250 to Tk13,200.
A new charge of Tk14,900 has been introduced for 40-foot high-cube or 45-foot containers, which were previously billed at the same rate as standard 40-foot containers.
Other fees, including ground rent, documentation, and lift-on/lift-off charges, have also been revised.
Ground rent has been set at Tk150 from Tk115 for 20-foot containers, and at Tk300 from Tk230 for 40-foot and larger containers.
Also, landing charge per tonne has been set at Tk270 from Tk207, documentation fee at Tk450 from Tk276, and lift-on/lift-off charge at Tk750 from Tk512.
Transportation fees for empty containers have also gone up, with 20-foot units rising from Tk1,705 to Tk2,500, and 40-foot high-cube or 45-foot units from Tk3,410 to Tk4,000.
Currently, 19 private ICDs handle approximately 93% of the country's export cargo and 20% of its containerised imports.
Stakeholders oppose service tariff hike at Ctg Port
Meanwhile, trade stakeholders have opposed the proposed hike of service tariffs for Chattogram Port, which saw a 41% increase as approved by the finance ministry in July and is currently awaiting publication in a gazette format.
To this end, representatives from the Chittagong Port Authority and nearly 20 other stakeholders held a meeting with Shipping Adviser Sakhawat Hossain on 25 August, but failed to reach a decision.
"No decision was made today, but all parties agreed that tariffs should not rise by more than 10%. Business cannot move forward by putting exporters at risk," said, Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents' Association.
BKMEA President Mohammad Hatem said if tariffs are raised excessively, it will negatively impact exports. "If there must be an increase, it should not exceed 10% on average."
However, another round of discussions has been scheduled for 5 September to resolve the matter.
Under the proposal, the average tariff per 20-foot container, which is Tk11,849 at present, would increase by Tk5,720 for imports and Tk3,045 for exports, taking the average total to Tk16,243 per container.
