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India Moves to Ease Export Bottlenecks as Shipping Disruptions Stall Middle East Cargo

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India’s maritime regulator, the Directorate General of Shipping, is set to convene a high-level meeting with ship owners, charterers and cargo stakeholders on Friday to address operational challenges affecting vessel movement amid ongoing geopolitical tensions impacting global shipping routes.

The discussions will particularly focus on issues faced by Indian-flagged vessels and ships transporting Indian cargo as disruptions continue to affect trade flows to key overseas markets.

In a parallel move to support exporters, the Federation of Freight Forwarders Associations in India (FFFAI) said the customs department has agreed to facilitate a faster “back-to-town” procedure, enabling exporters to move their containers back from ports to their warehouses or factory premises.

According to FFFAI Chairman Dushyant Mulani, many exporters had already completed shipment formalities for consignments bound for the Middle East, but the cargo has remained stranded at ports due to the absence of vessels willing to operate in the region.

“The Indian exporters who had already processed shipments at ports across the country for the Middle East are stuck. They cannot find ships to carry those containers. Customs has readily agreed to facilitate the early return of these containers back to exporters’ premises or warehouses,” Mulani said.

Freight forwarders held consultations with customs officials on Thursday to discuss the mounting logistical disruptions. Industry representatives said shipments of perishable commodities—including fruits, vegetables, meat products and seafood—that are normally exported daily from India to the Middle East have come to a complete halt.

Several containers carrying such goods have already been loaded and cleared by customs but remain stranded at ports because vessels bound for the region are unavailable. The delay is increasing financial pressure on exporters, who are being charged detention and demurrage fees at port terminals, container freight stations and depots, in addition to container rental charges imposed by shipping lines.

Freight forwarders believe that accelerating the back-to-town process will help exporters retrieve their cargo quickly and limit financial losses during the disruption.

The Central Board of Indirect Taxes and Customs (CBIC) has also directed Chief Commissioners of Customs across the country to actively engage with trade stakeholders and resolve operational bottlenecks at ports and inland logistics facilities.

Read More: Employees’ Welfare Society Can Adjust Member Benefits Before Taxation: ITAT Allows Set-Off of Welfare Claims Against Interest Income 

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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