Exporters flag high shipping surcharges

Indian exporters have raised concerns with the government over steep contingency surcharges being demanded by global shipping lines, with charges reportedly reaching up to USD 4,000 on 40-feet containers carrying perishable goods. Exporters say the sudden increase in costs is creating serious challenges for businesses engaged in overseas trade.

According to industry representatives, the shipping companies are refusing to release consignments that had already reached ports in the Middle East before the conflict involving the United States, Israel and Iran escalated on February 28. Exporters argue that imposing additional charges on shipments that were already in transit is unfair and financially burdensome.

Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the issue has been formally raised with the commerce ministry. He noted that while contingency charges could be justified for cargo that has not yet been loaded onto ships, applying them to shipments that had already reached regional ports is causing major difficulties for exporters.

The government has meanwhile constituted an inter-ministerial group to evaluate the impact of the ongoing geopolitical tensions in West Asia on India’s exports. Exporters say the problem is worsening as several shipping lines have stopped accepting consignments destined for West Asian countries. Sea freight charges have already increased by nearly 50 per cent, and a shortage of containers is emerging as vessels remain stranded at sea.

Sharad Kumar Saraf, a Mumbai-based exporter and founder chairman of Technocraft Industries India, said the growing shipping issues could reduce the price competitiveness of Indian goods in international markets. He also pointed out that many ships are now taking the longer Cape of Good Hope route, which delays the delivery of export consignments.