The Directorate General of Shipping (DGS) has directed all ports and shipping stakeholders to pass on all concessions granted directly to exporters without delay, aiming to ease cost pressures amid the ongoing West Asia crisis.
In an advisory issued on Wednesday, the DGS noted that several relief measures, such as waivers on detention charges and ground rent, were being routed through intermediaries, which prevented them from reaching exporters efficiently. The Centre highlighted that exporters have not fully benefited from these measures, diluting their intended impact.
“Terminal charges are not being uniformly passed on to exporters. Terminal operators are charging Non-Vessel Operating Common Carriers (NVOCCs), who then reimburse the concessional benefits. This circuitous process delays the concessions from reaching exporters,” the DGS said in its notification.
Intermediaries are now required to reflect the reduced costs transparently in the charges levied on exporters. The advisory explicitly bars the current practice of post-facto claims or procedural reimbursements, which often lead to uncertainty and delays.
Ports have also been instructed to establish clear communication, detailing the extent and duration of concessions to ensure all stakeholders are adequately informed.
Further, shipping lines must properly document any additional charges arising from cargo diversions or discharge at alternate ports. Informal levies will no longer be allowed. Shipping lines are also required to pass on any changes in war risk premiums (WRP) fairly in freight charges.
Any mismatch between actual risk costs and what is charged will be reviewed by the authority, with potential action for discrepancies. Additionally, a temporary digital grievance redressal system has been launched to track complaints and facilitate faster resolution through an inter-ministerial mechanism.
The advisory is effective immediately. This move is part of broader measures to maintain transparency in maritime charges and ensure operational continuity amid geopolitical disruptions that have increased freight and insurance costs.
The DGS also reiterated the need for full disclosure of all shipping-related charges under the Merchant Shipping Act, 2025, to prevent arbitrary levies. It flagged concerns over rising war risk premiums, emphasizing that revisions must be proportionate and transparently reflected in freight rates.