India Cracks Down on Shipping Surcharges Amid Middle East Crisis

The government authorities have asked shipping lines and port service providers to fully disclose all fees upfront, including fixed, conditional, and ancillary charges, before bookings are confirmed, according to an NDTV profit report, citing sources familiar with the matter.

The move comes after exporters flagged sharp and sometimes arbitrary increases in logistics costs, particularly during the current geopolitical crisis that has disrupted global shipping routes and pushed freight rates higher.

The Directorate General of Shipping (DG Shipping) is expected to issue guidelines mandating transparent disclosure of all shipping-related charges, ensuring that no additional fees are levied unless explicitly mentioned in the bill of lading, the key document outlining the terms of cargo transport.

While exporters have warned that sudden surcharges significantly inflate overall shipment costs, especially as vessels are rerouted or delayed across critical maritime corridors.

According to Sunil Vaswani of the Container Shipping Lines Association, shipping lines are not profiteering but facing the same operational pressures as exporters.

"Surcharges sometimes exceed freight rates because global freight has hit historically low levels in recent years," Vaswani was quoted as saying in the report.

To enforce compliance, the government is reportedly invoking provisions under the Merchant Shipping Act, 2025, particularly Section 317, which allows regulators to investigate hidden or undisclosed logistics charges and curb practices such as price manipulation or collusion among service providers.

The measures aim to protect exporters from high costs as tensions in the Middle East continue to disrupt trade.

- IANS