REGULATORY · MARKET STRUCTURE · INDIA
DG Shipping orders shipping lines to disclose charges upfront
Change
DG Shipping issued a circular directing shipping companies and their agents to refrain from predatory, non-transparent and opportunistic pricing and to communicate all charges upfront to exporters.
Why it matters
A circular issued on Monday instructed shipping companies and agents to refrain from predatory, non-transparent and opportunistic pricing and to communicate all charges upfront to exporters. Exporters flagged retrospective war surcharges levied after vessel arrival, with amounts cited up to $4,000 for perishables and about $3,000 for every 40-foot container. Officials indicated the regulator may invoke provisions under the Merchant Shipping Act that prescribe transparency norms for shipping charges. The circular is advisory and is not intended to fix prices.
Implications
- • Shipping companies and agents must provide full charge disclosure to exporters prior to shipment.
- • Retrospectively applied war surcharges are subject to regulatory review and constrained by the advisory.
- • Exporters will receive upfront visibility into applicable fees for containers and perishable cargo.
Who is affected
- • Shipping companies and their agents (including freight forwarders)
- • Exporters and export logistics managers
- • Maritime compliance and legal teams at shipping firms
Source
Topics
Law & Public Safety Regulatory Actions Business & Markets Supply Chain & Logistics