Inland container depot (ICD): Definition, services, and costs involved

When transporting containers, your box passes through a logistics node called an inland container depot (or ICD). Let’s learn more about ICD, its benefits, comparison with similar models, services offered, and the operational process.

What are inland container depots?

An inland container depot (ICD) is a storage facility located away from the hustle and bustle of a seaport. Often called dry ports, ICDs are crucial links in the global supply chain and logistics network.

Unlike seaports, which are situated along coastlines, ICDs are strategically located inland, often serving as intermediary points.

These facilities provide a range of services for container and cargo handling at both origin and destination. Their operations encompass container storage, maintenance, repair, container stuffing, and container stripping/destuffing. They also serve as an enabler for other logistics services such as customs clearance or consolidation operations.

Who uses inland container depots?

Importers and exporters: Businesses that ship goods internationally rely on ICDs for storage, customs clearance, and other logistical services.

Logistics service providers (LSPs): Companies specialising in moving cargo leverage ICDs to efficiently manage their clients’ shipments.

Shipping lines: While their main operations are at seaports, some shipping lines or carriers offer container depot services for empty container handling, equipment maintenance and repair.

Landlocked states: Countries without a coastline can use ICDs to connect to international maritime trade. The ICD acts as a virtual port, by having a rail or barge connection facilitating import/export.

What are the advantages of inland container depots in the supply chain?

Less congestion: Seaports can get congested, slowing down the movement of goods. ICDs act as overflow points, storing containers and handling pre-customs clearance procedures, which frees up space and speeds things up at the actual ports. This can relieve demurrage charges at port level and improve punctuality at the vessel time slots.

Resource effective: Transporting containers long distances to ports can be expensive. Inland container depots give customers easier access to the containers / cargo. This enables a smoother (de)stuffing operation, reducing associated costs like transportation, labour, etc.

How inland container depots operate

ICDs are busy hubs for managing containerised cargo movement. Here’s a simplified breakdown of the typical process:

1. Arrival: Containers arrive at the ICD by truck, train, or barge. They are either full of export goods or empty for loading.
2. Registration and documentation: Containers are registered in the ICD’s systems, documenting their contents, origin, and destination. All necessary paperwork is checked to ensure everything is in order. This includes eventual customs declarations and the physical inspections of the container and, if required or desired, the cargo.
3. Storage: Depending on their status (import/export, full/empty), containers are placed in designated storage areas within the ICD.
4. Customs clearance (import only): Some ICDs are authorised for full customs clearance, including inspections, duty payments, and permit approvals. It allows importers to complete the process closer to their location, reducing congestion at seaports and expediting cargo movement.
5. Other services: Some ICDs offer additional services like container stuffing and destuffing (packing/unpacking), fumigation (pest control), cold treatment, and container preparation.
6. Dispatch: Once all formalities are complete, containers are prepared for onward movement. This involves loading them back onto trucks or trains for transport to the port (export) or final destination (import).

Services offered by inland container depots

Storage: Temporary or long-term secure storage facility for full and empty containers

Container preparation: Containers are thoroughly checked and prepared for dry or refrigerated cargo. For example, see what we do at Maersk in our video on container preparation services for your cocoa.

Transportation links: Well-connected to road, rail, and water networks for cargo movement.

Stuffing and destuffing: Optimised packing and unpacking of various types of cargo.

At Maersk, we also offer a wide range of value-added services, including: Verified Gross Mass (VGM), fumigation, cold treatment, container inspection, and cargo inspection.

Costs associated with inland container depots

While ICDs offer significant cost savings by reducing transportation needs, there are still some fees involved in utilising their services. Here’s an overview:

Storage: ICDs charge storage fees based on the container size and duration of storage. These fees can vary depending on the specific ICD, container type (dry vs. refrigerated), and storage duration (short-term vs. long-term).

Handling: Activities like loading, unloading, and moving containers within the ICD might incur handling fees. These fees typically depend on the number of moves required and the type of handling equipment used.

Value-added services: Optional services like container stuffing or destuffing, fumigation, or VGM come with additional charges. The cost depends on the specific service, the container size, and the level of work involved.

Security: Some ICDs might levy additional security fees for heightened security measures, such as CCTV or other high-tech surveillance.?

Factors to consider regarding ICD costs

Location: The geographic location of the ICD can impact costs. ICDs in high-demand areas might have higher fees than those in less congested regions.

Volume discounts: Many ICDs may offer discounts for businesses that use their services frequently or handle large shipments.

Negotiation: Depending on your business relationship with the ICD and the volume of your shipments, there might be some room for negotiation on specific fees.

With the right ICD partner, you can navigate the complexities of global trade with greater efficiency and confidence. Did you know Maersk offers container depot solutions designed to give you control, flexibility, and visibility of your containers and cargo? Explore Maersk Depot Services.