India's Directorate General of Shipping directs shipping lines to disclose all fees upfront
Change
India's Directorate General of Shipping issued a circular telling shipping companies and their agents to refrain from predatory pricing and to communicate all charges in advance, citing concerns over retrospective war surcharges reportedly as high as $4,000 for perishables and about $3,000 per 40-foot container.
Why it matters
The circular creates a formal expectation that carriers must provide pre-shipment fee disclosure, increasing the regulatory scrutiny on retrospective and opportunistic levies. That makes it harder for shipping lines to apply undisclosed surcharges after vessels have sailed without exposing themselves to complaints or possible action under the Merchant Shipping Act.
Implications
- • Shipping companies' pricing and commercial teams must provide written, itemised fee schedules and pre-shipment charge confirmations to shippers — failure to document or disclose charges may trigger regulatory scrutiny under the Merchant Shipping Act.
- • Exporters' logistics and procurement teams must demand and archive written confirmations of all shipping charges before tendering cargo — without documented pre-shipment fees they risk paying retrospective surcharges that will be harder to contest.
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