A significant increase in service charges at 19 private container depots across Bangladesh has sparked widespread concern among exporters, freight forwarders, and trade associations, with fears that rising logistics costs could undermine the country’s export competitiveness.

The Bangladesh Inland Container Depot Association (BICDA) has introduced a revised tariff structure effective September 1, raising fees by an average of 50 per cent, with some services seeing hikes of up to 81 per cent. The move, implemented without prior consultation with the official tariff evaluation committee or key stakeholders, has drawn strong criticism from the export community.

Major tariff increases

The new pricing applies to a broad range of services, including container handling, storage, transportation, and documentation.

Key increases include a substantial rise in package handling charges for export containers, with the cost for a 20-foot container increasing from Tk 6,127 to Tk 9,900, an increase of 62 per cent.

For 40-foot containers, the charge has gone up from Tk 8,250 to Tk 13,200 (60 per cent), while 40-foot-high cube containers now incur a fee of Tk 14,900, up from Tk 8,250, marking an 81 per cent increase.

In the case of Garment-on-Hanger (GOH) cargo, the package charge for a 20-foot container has risen to Tk 11,900 from Tk 6,127, while 40-foot GOH containers are now charged Tk 15,200 and 40-foot-high cube GOH containers Tk 16,900.

The plug-in charge for reefer containers has also increased, rising from Tk 1,700 to Tk 2,200. Ground rent fees have been revised upwards as well, with the charge for 20-foot containers going from Tk 115 to Tk 150, and for 40-foot and high cube containers increasing from Tk 230 to Tk 300.

The documentation fee per container has been raised to Tk 450 from Tk 276, and the lift-on/lift-off (crane) charge now stands at Tk 750, up from Tk 520.

Transport costs for empty containers have also surged: for 20-foot units, the charge has increased from Tk 1,705 to Tk 2,500, and for 40-foot and high cube containers, from Tk 3,410 to Tk 5,000.

CFS storage fees have been adjusted, with the post-free period charge now set at Tk 45 per cubic metre per day, up from Tk 29, while shirtout cargo is now charged Tk 45 per cubic metre per day with no free storage period.

The Verified Gross Mass (VGM) charge has been fixed at Tk 1,720 per container.

Additionally, a new labour charge of Tk 2 per piece has been introduced for loading GOH cargo, and storage fees have been raised from Tk 3 to a maximum of Tk 6 per unit.

BICDA cites dollar depreciation in defence

In defence of the increase, Ruhul Amin Sikder Biplob, Secretary General of BICDA, told Jago News that the revision responds to the 55 per cent depreciation of the Bangladeshi taka against the US dollar over recent years.

"Most of our capital expenditures, equipment, spare parts, and technology upgrades, are made in dollars," Biplob explained. "What cost us Tk 8,250 per $100 in 2021 now costs Tk 12,500. While shipping lines and freight forwarders invoice in dollars, we receive payments in taka. This mismatch has created unbearable pressure on our operations."

He added, "We are not charging exporters directly. These costs are passed on to freight forwarders acting on behalf of foreign buyers. If others can invoice in dollars, why can’t we?"

Exporters warn of competitiveness risks

The move has been met with strong opposition from exporters, who argue that the burden will ultimately fall on Bangladesh’s export sector, particularly the vital ready-made garment (RMG) industry.

SM Abu Tayyab, Managing Director of Independent Apparels and a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), called the hike "unreasonable and unilateral."

“There is a formal evaluation committee to review tariff adjustments. BICDA bypassed it completely,” Tayyab said. “They didn’t consult the port authority, NBR, or exporters. This is a matter of national economic importance, not a private business decision.”

He warned, “Our exports are already under pressure due to global economic slowdowns. Adding 30–60 per cent to logistics costs will make Bangladesh less competitive. Foreign buyers may shift orders to countries with lower operational costs.”

Freight forwarders voice concern

Khairul Alam Sujan, former Vice-President of the Bangladesh Freight Forwarders Association (BAFFA), echoed these concerns.

“This decision was made without stakeholder dialogue,” Sujan said. “Even a proposed meeting with the Chittagong Port Authority was cancelled. We’re in a fragile economic transition. This sudden cost surge will affect exporters, importers, and overseas agents alike. The entire trade ecosystem is at risk.”

Strategic importance of private depots

Private Container Freight Stations (CFS) play a critical role in Bangladesh’s trade logistics. While Chittagong Port handles 59,000 TEUs of container capacity, the 19 private depots manage 106,000 TEUs, more than double.

Annually, these depots handle 2.2 million containers, covering all export shipments and 65 categories of imported goods. Virtually every export container passes through these facilities for stuffing, inspection, and dispatch.

Calls for dialogue and review

Industry leaders are urging BICDA to suspend the increases and engage in transparent negotiations with stakeholders. They recommend establishing a joint committee with BGMEA, BAFFA, port authorities, and customs officials to review cost structures and ensure fair, sustainable pricing.

As Bangladesh seeks to maintain its position in global supply chains, the tariff controversy underscores the need for coordinated policy-making in trade logistics, where even domestic pricing decisions can have international consequences.