Indian shipping regulators are closely monitoring export supply chain dynamics. This comes as ocean carriers appear to profit from disruptions, especially during significant crises.
Recently, the US Federal Maritime Commission (FMC) has pushed back against carrier charges. Commissioner Laura DiBella has denied requests from carriers to impose war-related fees without providing the usual 30 days' notice. She noted that carriers did not provide enough evidence that these charges matched actual costs, indicating a need for stricter oversight of emergency pricing.
In India, the Directorate General of Shipping (DG Shipping) has introduced a dedicated system for shippers and trade stakeholders to lodge complaints about freight pricing and carriers' contractual obligations.
DG Shipping stated, “Given the current disruptions in maritime logistics and trade due to the situation in the Middle East, and based on feedback from the industry, we are setting up a help line to support exporters, shipping lines, and multimodal transport operators.”
This desk will serve as a central point for addressing disputes, such as shipment delays, cargo discharge issues, various charges imposed by carriers, and overall operational uncertainties.
The complaint resolution wing will collaborate with other government agencies, including seeking higher-level ministry intervention to address grievances.
This initiative follows a March 9 advisory from DG Shipping, urging shipping lines to avoid unfair trade practices and opportunistic pricing strategies.
The Directorate emphasized that all players in the maritime logistics chain should work together to maintain transparency and fairness, aiming to facilitate trade, lower logistics costs, and enhance the ease of doing business in India.
Indian exporters, both individually and through their associations, have been urging the government to take action against foreign-flagged carriers, especially with the rise of emergency surcharges since the crisis in the Middle East.
However, industry analysts suggest that high freight rates and various surcharges are primarily driven by supply and demand dynamics. Thus, it remains uncertain how effectively DG Shipping or other regulatory bodies can intervene amid such volatility.
Additionally, the effects of supply chain disruptions in the Middle East are impacting other trade routes. A recent example is the new inland haulage fee introduced by the Singapore-based shipping company ONE for shipments to and from Canada and the US via rail or truck.
“The recent events in the Middle East, including the closure of the Strait of Hormuz, have significantly affected fuel availability and distribution globally,” ONE informed its customers.
“ONE will conduct monthly reviews to adjust this fee based on the latest diesel price trends,” they added.