The full form of ICD in shipping is Inland Container Depot. It is a key logistics hub for storing and handling cargo containers away from seaports. In this article, let’s explore the meaning and significance of ICDs, their key processes, and how you can leverage them to streamline your supply chain.
What is ICD in shipping?
ICD, or Inland Container Depot, refers to a storage facility located inland within a country, designed to handle full and empty containers. These containers are transported between the ICD and seaports via road or rail.
Sometimes called “Dry Ports” due to their distance from the coast or main river routes, ICDs play a vital role in logistics by acting as key hubs for container management far from the water’s edge.
Benefits of inland container depots:
Infrastructural support
ICDs offer inland shippers and consignees closer access to port services, which is especially beneficial for businesses in landlocked regions.
For instance, in the United States, this container depots serve shippers in inland states, allowing them to manage shipments. By consolidating cargo at ICDs, freight forwarders can streamline operations and save costs.
Efficient shipment planning and customs clearance
ICD shipping also improves shipment planning. With an ICD, you can process shipments and clear customs before reaching the port. This early preparation reduces the likelihood of delays caused by customs inspections, ultimately minimizing costly demurrage fees that can occur when containers are held up at the port.
Who uses ICD in shipping?
Logistics service providers (LSPs): Logistics providers often depend on ICDs to optimize the transportation and management of their clients’ shipments.
Shipping lines: Some carriers expand their services to Inland Container Depots, primarily for handling empty containers and equipment maintenance/repairs.
Importers and exporters: Businesses engaged in international trade rely on ICD for container storage, customs clearance, and overall logistics management.
Landlocked states: These depots, connected by rail or barge, serve as virtual ports, enabling landlocked nations to import and export goods efficiently.
Who owns inland container depots?
ICD can be privately or government-owned, depending on the country. For example, in India, inland container depots are typically state-owned and managed by the Container Corporation of India (CONCOR). In Europe and North America, ownership of inland container depots is more diverse. Rail companies, private enterprises, and port operators all contribute to the operation of these depots.
How does an inland container depot work?
1. Arrival of containers
Containers arrive at a container depot via truck, rail, or barge. They may be filled with export goods or arrive empty, awaiting new cargo.
2. Registration and documentation
Upon arrival, staff logs each container into the ICD system, recording details like its contents, origin, and destination. They also verify essential documents, including customs paperwork. The process may also involve physical inspections of the containers and their cargo to ensure compliance with regulations.
3. Storage
Containers are then placed in designated storage areas based on their type, whether full or empty, or they’re for import or export.
4. Customs clearance (import-only)
Certain ICDs handle full customs clearance on-site. This includes conducting inspections, processing duty payments, and obtaining necessary permits.
5. Value-added services
Stuffing and devanning containers, fumigation for pest control, cold treatment for perishables, and container maintenance.
6. Dispatch
Once all formalities are complete, containers are ready for onward transport. Whether they’re heading to a port for export or their final destination for import, containers are loaded onto trucks or trains for the next phase of their journey.
Difference between ICD and CFS
While both Inland Container Depots and Container Freight Stations perform similar functions, they are distinct entities.
A CFS is typically located near a seaport and focuses on consolidating and segregating cargo. It primarily handles Less-than-Container Load (LCL) shipments that require consolidation before shipping. The prime purpose of a CFS is to ease port congestion and free up valuable space near the coastline.
In contrast, ICDs are situated inland, connecting ports to the hinterlands. It serves as a critical link between ports and inland areas.
Costs associated with inland container depot
Although ICD shipping offers considerable cost savings by minimizing transportation expenses, several fees still apply when using their services. Here’s a breakdown of the main costs:
- Storage fees: ICDs charge storage fees based on container type, size, and duration of storage.
- Handling costs: Services like loading, unloading, and moving containers within the ICD incur handling charges.
- Value-added services: Optional services such as container fumigation, stuffing or destuffing, and Verified Gross Mass (VGM) certifications.
Why choose ASLG for your global shipments?
As a leading freight forwarder in China, Airsupply specializes in providing tailored solutions to meet your shipping needs. We simplify the process, ensuring smooth container handling, efficient customs clearance, and timely deliveries.
Whether it’s container storage, handling, stuffing, fumigation, or other specialized needs, we offer a comprehensive range of services—all under one roof. Our streamlined solutions ensure your shipments are faster, more reliable, and cost-effective.
