Apparel sector leaders have opposed the 22 per cent hike in different container handling charges raised by private inland container depots (ICDs) effective from Wednesday.
They sought the government's intervention to halt the hike saying it would increase their costs sharply affecting the export activities at a time when the sector is passing a tough time.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in a letter to the shipping ministry on December 31 sought necessary measures to the effect that the private ICDs/off-dock operators cannot collect the enhanced charges without the ministry's approval.
Earlier on December 12 the Bangladesh Inland Container Depots Association (BICDA) increased the empty container handling charges and export goods stuffing package charges by 22 per cent and instructed all the private ICDs to collect the enhanced rates from January 01, 2020.
Under the enhanced charges, for a 20 feet export container the package (stuffing) costs have increased to Tk 4,390 from Tk 3,600 and the ground rent has gone up to TK 125 from Tk 100 per day.
The landing charges have risen to Tk 220 from Tk 180 per tonne and CFS storage charges after seven days have increased to Tk 30 from Tk 25 and the per container VGM charge to Tk 1,220 from Tk 1,000.
For a 20-feet empty export container, the charges for per day ground rent, lift on/off, documentation charges and one-way transportation/haulage have increased by Tk 22, Tk 66, Tk 52 and Tk 220 respectively.
When asked, BICDA President Nurul Qayyum Khan said they were operating their ICDs at a level below the cost.
The rate couldn't be the same for years when cost of labour, US dollar and other service charges increased, he added.
About 90 per cent of export goods are stuffed into containers at 18 private ICDs located in and around the port city, before shipment through the Chattogram port.
Some 21 per cent of the import containers are sent from the port to the ICDs, from where the goods are delivered. They are handling a total of 37 import items.
Terming the revised rates a 'one-sided decision', BGMEA President Dr Rubana Huq in the letter said private ICDs/off-dock operators informed different shipping agents and freight forwarders that they would collect the enhanced charges from January 01.
"Such a sudden hike would have a negative impact on the country's largest export sector, readymade garment (RMG), increasing its export costs," she said.
Citing a decision in a meeting held at the shipping ministry, she said private ICDs can't raise the charges without the ministry's approval.
The RMG sector has been passing a tough time due to the downward trend of products' prices, a wide range of compliance requirements set by global buyers and other internal issues, she added.
"In such a situation, local RMG factories would lose their competitiveness in the global market, if the enhanced charges are collected," she feared.
When asked, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) acting president Mohammad Hatem said according to the related policy, they (private ICDs) need to propose a tariff review to the ministry and then the tariff committee can revise the tariffs on approval of the ministry.
They have increased the rates without any consultation with the stakeholders, he alleged. The hike could not be acceptable, he added.
Bangladesh Textile Mills Association President Mohammad Ali Khokon raised a question as to how the industry would survive, if 22 per cent charges are imposed at a time when export growth is negative and utility charges have gone up.
When asked, BICDA secretary Ruhul Amin said they are implementing the rate recommended by a committee in 2016. The committee found that their cost increased by 42 per cent from 2010 to 2015.
The container handling charges increased by 20 per cent in April 2017 and they were assured of raising the remaining 22 per cent later, he said.
But no further move was taken by the committee, he said adding that in September last the private ICDs agreed to implement a 10 per cent hike during October to December 2019.
In 2020, they are now implementing the 2016 recommendation, he said.
