The Directorate General of Shipping (DGS), under the Ministry of Ports, Shipping and Waterways, has issued an advisory to shipping lines, carriers and their agents urging them to maintain transparency in transaction costs and refrain from imposing predatory or non-transparent charges in India’s export-import (EXIM) trade.

The advisory came in response to multiple representations received by the Directorate from stakeholders in the EXIM sector. Industry participants had raised concerns about the increasing levy of various ancillary charges by shipping lines and their agents, which were perceived to be opaque and opportunistic in nature. According to the Directorate, such charges have contributed to a rise in logistics transaction costs across the supply chain.

The regulator noted that some of these charges appear to be taking advantage of prevailing geopolitical tensions and war-like situations that have disrupted global shipping routes and supply chains. These developments, it said, have created conditions where certain service providers may be imposing additional fees without adequate transparency or justification.

Referring to the regulatory framework, the Directorate stated that the Merchant Shipping Act, 1958 seeks to promote the development and efficient functioning of India’s mercantile marine in a manner that serves national interests. It also pointed out that the Multimodal Transportation of Goods Act, 1993 governs the registration and regulation of Multimodal Transport Operators (MTOs), forming an important part of the logistics ecosystem.

The circular further recalled that a similar advisory had earlier been issued in 2016, where shipping lines and other stakeholders were advised not to levy certain charges and to ensure greater transparency in the imposition of costs connected with the transportation of EXIM cargo. The latest advisory reiterates those principles amid renewed complaints from industry participants.

The Directorate also referred to the Merchant Shipping Act, 2025, which introduces provisions aimed at strengthening transparency in shipping-related charges. Under Section 317 of the Act, the Central Government is empowered to direct service providers or their agents to clearly specify all charges in transport documents such as the Bill of Lading. These include both fixed and conditional charges that may be payable by exporters, importers, consignors or consignees in India.

In light of these developments, the Directorate has advised all shipping lines, carriers and their agents to refrain from engaging in predatory, non-transparent or opportunistic pricing practices, including the imposition of exorbitant charges by taking undue advantage of geopolitical developments. They have also been urged to adhere to fair trade practices and avoid levying charges that may lead to disputes within the EXIM trade community.

Further, the advisory emphasises that all applicable charges should be clearly communicated in advance to exporters, importers and other stakeholders to ensure predictability and transparency in commercial transactions.

The Directorate expressed the expectation that stakeholders across the maritime logistics chain will cooperate in maintaining transparency and fairness in commercial practices. It added that such measures are essential for facilitating trade, reducing logistics costs and improving the ease of doing business in India.

The circular has been issued with the approval of the Director General of Shipping and Additional Secretary to the Government of India. Copies of the advisory have been shared with key government departments and authorities, including the Ministry of Commerce, the Directorate General of Foreign Trade (DGFT), and the Central Board of Indirect Taxes and Customs (CBIC).

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