Government Moves To Curb 'Profiteering' By Shipping Lines, Ports Amid War Disruptions

The government is preparing to crack down on what it describes as “profiteering” by shipping companies and port operators after exporters complained of steep and often opaque surcharges being imposed amid disruptions caused by the ongoing conflict in West Asia. According to sources familiar with the matter, authorities have asked shipping lines and port service providers to fully disclose all charges upfront, including fixed and conditional fees levied on exporters.

The move comes after exporters flagged what they described as 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.

Mandatory Disclosure Of Charges

Officials said the Directorate General of Shipping (DG Shipping) is expected to soon issue guidelines mandating transparent disclosure of all shipping-related fees. Under the proposed framework, shipping lines and logistics operators will be required to clearly declare every applicable charge to exporters before shipments are booked, including conditional surcharges and ancillary fees.

The government is also looking to ensure that no additional charges are levied unless they are explicitly mentioned in the bill of lading, the key document that outlines the terms of cargo transportation.

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Exporters have raised concerns with the government about a sudden increase in additional surcharges imposed by shipping companies, particularly as global supply chains face disruptions linked to geopolitical tensions. Industry representatives have said the charges are often introduced without prior disclosure and significantly raise overall shipment costs.

The escalation in conflict in the region has also driven higher shipping and port handling costs, as vessels reroute or face operational delays across critical maritime corridors.

Sunil Vaswani, of Container Shipping Lines Association, has responded to the exporters' charges of high prices saying that they are trying to help exporters as much as they can. He added that Shipping lives are not 'profiteering, but are in the same situation as the exporters. He also noted that, "Surcharges are higher than freight rates in some cases because freight rates had hit rock bottom in recent years."

Legal Framework Invoked

To address the issue, the government is invoking provisions under the Merchant Shipping Act, 2025, which allow regulators to intervene in cases involving unfair practices in the shipping sector. Officials said Section 317 of the Act provides powers to act against hidden or undisclosed logistics charges, enabling authorities to investigate and curb practices such as price manipulation or collusion among service providers.

The measures come as the government seeks to protect exporters from excessive logistics costs. Last week, Anil Devli, Chief Executive Officer of Indian National Shipowners' Association (INSA) told NDTV Profit that he feared freight rates for global maritime trade could surge up to threefold as escalating tensions in the Middle East disrupt shipping through the Strait of Hormuz.

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