The government is addressing concerns raised by exporters regarding alleged “profiteering” by shipping companies and port operators amidst disruptions linked to the West Asia conflict. Authorities are urging full disclosure of all fees, including fixed, conditional, and ancillary charges, before booking confirmation. Exporters have reported significant increases in logistics costs, particularly during the ongoing geopolitical crisis affecting global shipping routes.
In response to exporters’ complaints, the Directorate General of Shipping (DG Shipping) is set to introduce guidelines mandating transparent disclosure of all shipping-related charges. The goal is to prevent additional fees unless explicitly stated in the bill of lading, the essential document detailing cargo transport terms. Exporters fear that sudden surcharges are inflating overall shipment expenses, especially due to vessel rerouting and delays in critical maritime corridors.
Sunil Vaswani of the Container Shipping Lines Association has emphasized that shipping lines are not profiteering but facing operational challenges similar to exporters. He noted that surcharges may surpass freight rates due to historically low global freight levels in recent years. To ensure compliance, the government plans to utilize provisions under the Merchant Shipping Act, 2025, specifically Section 317, to investigate undisclosed logistics charges and prevent practices like price manipulation or collusion among service providers.
These measures aim to safeguard exporters from escalating costs amid ongoing Middle East tensions that disrupt trade activities.
