DISTINGUISHING BETWEEN ICD AND SEAPORT IN IMPORT – EXPORT OPERATIONS

In the field of import-export and logistics, understanding the difference between ICD and seaport is crucial. While both play vital roles in the cargo transportation chain, they differ significantly in terms of function, location, and operational role. This article aims to clarify these two concepts to help businesses optimize their shipping and customs clearance processes.

 

1. What is an ICD?

ICD stands for Inland Container Depot, also known as an inland port or dry port. It is a logistics facility built inland, away from coastal areas, and serves functions similar to those of a seaport when it comes to container handling. ICDs often act as transit hubs to ease congestion at main seaports.

Key characteristics of an ICD:

• Located inland, usually near industrial zones or major distribution centers.

• Not adjacent to the sea but connected to seaports via road or rail networks.

• Equipped to handle customs clearance, inspection, storage, and distribution of goods.

 

Main functions:

• Container consolidation and distribution: Import goods arriving at seaports are transported to ICDs for customs clearance and domestic distribution.

• On-site customs procedures: Many ICDs have affiliated customs offices, enabling businesses to save time and costs during the clearance process.

• Warehousing and storage: ICDs serve as storage hubs for containers awaiting clearance or further distribution.

Notable ICDs in Vietnam:

• Tan Cang Song Than ICD (Binh Duong)

• Long Binh ICD (Dong Nai)

• Phuoc Long ICD (Ho Chi Minh City)

 

2. What is a Seaport?

A seaport is a coastal facility where goods are loaded onto and unloaded from ocean-going vessels. Seaports represent the initial link in the international logistics chain and play a critical role in global trade.

Key characteristics of seaports:

• Located along coastlines or at major river mouths.

• Equipped with docks, container yards, and specialized infrastructure to accommodate large vessels.

• Operate under strict supervision by customs and other regulatory authorities.

 

Main functions:

• Receiving cargo ships: The first stop for imported goods arriving or exported goods departing by sea.

• Loading and unloading cargo: Containers are transferred from ships to trucks or barges for further inland movement.

• Customs inspection and clearance: Initial customs procedures, including documentation review and product inspection, are typically conducted at seaports.

• Logistics connectivity: Seaports are interconnected with ICDs and other transport networks to facilitate cargo movement inland.

 

Major seaports in Vietnam:

• Cat Lai Port (Ho Chi Minh City): The largest container port in Vietnam.

• Hai Phong Port: The primary gateway for imports and exports in the northern region.

• Cai Mep – Thi Vai Port (Ba Ria – Vung Tau): A deep-water port serving international container ships.

 

3. The Link Between ICDs and Seaports in the Logistics Chain

Despite their differences in function and location, ICDs and seaports are interdependent links in the modern logistics system. Their coordination ensures that goods are transported efficiently, on time, and in full compliance with legal procedures.

 

Example of how ICDs and seaports work together:

A shipment imported from the U.S. arrives at Cat Lai Port. After unloading, the containers are transported by road or river to Song Than ICD. At the ICD, the importing business completes customs clearance and inspection before taking delivery of the goods to their warehouse or factory.

 

4. Summary: Choosing the Right Facility to Maximize Efficiency

• Seaports are the entry and exit points for international shipments, subject to tight regulatory control and equipped to handle ocean freight.

• ICDs are inland transit hubs that support domestic cargo handling, storage, and flexible customs processing.

By clearly understanding the roles of ICD and seaport, businesses can make informed logistics decisions, reduce waiting times, save on operational costs, and ensure full compliance with import-export regulations.