Private inland container depots (ICDs) have increased their charges by around 10% to offset the impact of higher fuel prices, adding to logistics costs for exporters and importers.
The increase is expected to affect cargo moving through private ICDs, where fuel is a significant component of operating expenses. Higher diesel and transportation costs have raised expenses associated with handling, container movement and inland cargo operations.
The revised charges could increase the overall logistics bill for businesses using ICDs as gateways for international containerised trade. Exporters, particularly those handling cost-sensitive cargo, may face additional pressure on margins if higher logistics expenses cannot be passed on to customers.
Private ICDs play an important role in India’s freight network by connecting inland production and consumption centres with major ports. Containers are moved between these facilities and ports by road and rail before being loaded onto or discharged from ocean-going vessels.
The fuel-related increase comes amid continued efforts by logistics operators to manage rising operating costs. Besides transportation, higher fuel prices can also affect equipment operations and other activities associated with container handling.
The impact is likely to vary depending on cargo volumes, distance from ports and the transport mode used for moving containers. Companies with large or frequent shipments may therefore see a more noticeable increase in overall logistics expenditure.
The latest charge revision highlights the sensitivity of India’s inland logistics sector to changes in fuel prices. Any sustained increase in fuel costs could lead to further adjustments in transportation and cargo-handling charges across the supply chain.