Bangladesh’s BAFA opposes 20-80% hike in container handling charges
BICDA has increased charges by 20 per cent to 80 per cent for export containers, with the new rates set to take effect this month.
Bangladesh freight forwarders oppose a sharp hike in container handling charges by the Bangladesh Inland Container Depots Association, which has raised charges by 20-80 per cent for export containers.
Cautioning that the decision will severely hit exports, the Bangladesh Freight Forwarders Association said solutions to problems could be found through improving efficiency, and not by raising costs.
The Bangladesh Freight Forwarders Association (BAFA) told a press conference in Dhaka that solutions to existing problems could be found through improving efficiency, such as reducing cargo unloading times, using modern equipment and addressing labour shortages, and not by raising costs.
It urged BICDA to withdraw the decision, especially in light of the current economic downturn, according to domestic media outlets.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has expressed solidarity with the freight forwarders by writing a letter to the Chittagong Port Authority. Other exporters too support the demand.
Freight forwarders say the new rates will significantly raise the cost of doing business. The charge for a 20-foot export container will jump from Tk 6,187 to Tk 9,900, while a 40-foot container will cost Tk 13,200 instead of Tk 8,250. The charge for a 45-foot high-cube container will rise from Tk 8,250 to Tk 14,900.
The costs for almost all other services, including empty container handling, lift-on/lift-off, documentation and ground rent, will also be increased.
Fibre2Fashion News Desk (DS)
