India's DG Shipping directs shipping lines to disclose charges upfront
Change
India's DG Shipping directed shipping companies and their agents to communicate all freight and ancillary charges to exporters in advance and to desist from predatory, non‑transparent and opportunistic pricing, after exporters reported retrospective war surcharges reaching about $4,000 for perishables and $3,000 per 40‑foot container.
Why it matters
Shipping lines will face greater difficulty imposing retrospective war surcharges and other opportunistic levies on Indian exporters because regulators are requiring advance disclosure of fees. DG Shipping's reference to the Merchant Shipping Act raises the prospect of formal regulatory scrutiny for continued non‑transparent charging practices.
Implications
- • Shipping companies and their agents must provide itemised, advance fee schedules to exporters before accepting bookings or face potential regulatory action under the Merchant Shipping Act.
- • Exporters' logistics and export compliance teams should obtain written confirmation of all carrier charges prior to dispatch to avoid exposure to retrospective surcharges.
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