Government Targets Shipping Lines’ ‘Profiteering’ with Mandatory Fee Transparency

The Indian government is set to clamp down on exploitative surcharges by shipping companies and ports, mandating full upfront disclosure of all fees to shield exporters from opaque cost hikes triggered by West Asia war disruptions.

Sources reveal the Directorate General of Shipping (DGS) will soon issue binding guidelines, requiring carriers to list every charge—including conditional war risk premiums and ancillary fees—prior to booking, with no extras allowed unless specified in the bill of lading. This invokes Section 317 of the Merchant Shipping Act, 2025, empowering probes into unfair practices amid complaints of surcharges rivaling base freight rates.

Exporters have flagged arbitrary add-ons amid Hormuz Strait snarls, where rerouting vessels has spiked logistics expenses; INSA warns freight could triple if tensions persist. Container Shipping Lines Association counters that rates reflect prior lows and shared crisis pain, not gouging.

The crackdown complements recent JNPA waivers and customs easing for returned cargo, bolstering EXIM resilience as global routes face prolonged strain.