Export-import trade costs to rise further as ICDs increase tariffs by 8.5%

Rising tensions in the Middle East since 28 February have pushed global shipping costs up by 25% over the past month, making business operations more expensive.

Against this backdrop, the cost of export-import trade through inland container depots (ICDs) is set to rise further after depot operators announced an 8.5% increase in container handling charges, citing higher fuel costs.

In a circular issued yesterday (19 April), the Bangladesh Inland Container Depots Association (Bicda) said the surcharge took effect immediately, following a 15% increase in diesel prices, from Tk100 to Tk115 per litre.

The association said the rise in fuel costs has significantly increased operational expenses across private ICDs, prompting the tariff adjustment.

Confirming the circular, Bicda Secretary General Ruhul Amin Sikder said, "We have instructed all private ICDs to inform their clients and implement the revised rates from 19 April."

Industry stakeholders say the cumulative impact may exceed the stated 8.5% increase, as multiple service components within the supply chain are being affected simultaneously.

Continued increases in fuel and handling costs are steadily pushing up the overall cost of doing business in external trade.

Where the increase applies

The revised charges apply across a wide range of services integral to container handling outside the port.

These include transportation of empty containers between Chattogram Port and inland depots, haulage between Patenga Container Terminal and ICDs, and lift-on and lift-off services.

Export-related handling, such as container stuffing and Verified Gross Mass (VGM) procedures, will also be subject to the increased rates.

On the import side, delivery packages covering transportation, unloading, and final delivery from depots are included in the surcharge.

Impact on exporters and importers

As the increase spans multiple stages of the logistics chain, its impact is expected to be broad-based.

Exporters are likely to face higher overall logistics costs, which could weaken their competitiveness in international markets, particularly in price-sensitive sectors such as garments and agro-processing.

Importers may also see higher landed costs of goods, which could eventually be passed on to consumers, adding to inflationary pressure in the domestic market.

Rakibul Alam Chowdhury, former vice-president of BGMEA, said, "Last year, both Chattogram Port Authority and Bicda increased tariffs by 41% and 44% respectively, raising the cost of doing business. Before we could adjust to the increased tariffs, shipping lines raised freight charges following the escalation of the Middle East conflict, making it very difficult for us to remain competitive in the global market."

"The recent fuel price hike and tariff increase by ICDs are like the last nail in the coffin. We will have no option but to incur losses and reduce production," he added.

Abu Tayyab, a director of BGMEA, said, "It is unethical and illegal to increase tariffs without consulting stakeholders. There should be a coordination committee where such proposals are discussed and decisions are made rationally."

There are 21 ICDs in the country, which play a key role in easing congestion at Chattogram Port by handling container storage, stuffing, and delivery.

Any change in their tariffs therefore has a ripple effect across the trade ecosystem.

The latest increase highlights mounting cost pressures in the sector.

Unless fuel prices stabilise, exporters and importers are likely to face sustained increases in logistics expenses, with wider implications for pricing, competitiveness, and supply chains.