New Delhi: Shipping lines maintained that freight rates are already at a multi year low, visually distorting the magnitude of surcharges. The position was reiterated during a discussion called by the Department for Promotion of Industry and Internal Trade (DPIIT) on the West Asia crisis. Representatives from port operators also expressed concerns over proposals to use space at terminals for holding stranded containers over extended periods without any levies.
This virtual meeting was called to identify immediate interventions needed to resolve the concerns of maritime trade which is stunted due to escalating tensions in the Persian Gulf.
“‘Most of our services are to long haul destinations (without any surcharges),” Sunil Vaswani, Executive Director of the Container Shipping Lines Association (CSLA) in India told ET, adding shipping lines were forced to suspend their limited services to the Persian Gulf due to the blockage of the Strait of Hormuz.
CLSA represents 26 foreign container shipping lines operating in India.
Freight rates for 40-feet containers on the Asia-North Europe route peaked in 2024, climbing briefly to over $ 8,000 per unit, but have since crashed to below $ 1,500 per unit. According to an S&P Global analysis, ocean fares are expected to remain soft in 2026, but subject to volatility. Global shipping lines have levied War Risk Surcharges varying up to $ 3,000 per unit on cargo moving in and around West Asia.
With the Iran crisis escalating, the government has been holding regular consultations with affected exporters and maritime industry to address concerns of higher costs and stranded containers.
“Ports cannot be used as rent free warehouses…There are fixed charges that need to be paid,” a person attending the meeting said.In an order issued last week, the Union Ports, Shipping, and Waterways Ministry directed ports to “consider requests from users regarding reduction, waiver, or remission charges on a case-to-case basis.”
The situation in West Asia has severely affected Indian exports according to Amit Kamat, Chairman, Federation of Freight Forwarders’ Associations in India. He said additional levies need to be moderated.
“Charges or surcharges levied by Shipping Lines, Custodians, Terminal operators should be compensatory in nature just enough to defray the additional costs incurred by them and need to be kept at bare minimum,” Kamat said.
On Monday, India’s Directorate General of Shipping (DG Shipping) issued an advisory to Shipping Lines, Carriers, and Agents asking them to desist from predatory, non-transparent and opportunistic pricing amid maritime disruptions due to the Iran war. The move followed exporters alleging excessive surcharges demanded by shipping lines for West Asia-bound containers.
