DG Shipping Issues Advisory on Transparent Pricing by Shipping Lines amid Rising EXIM Logistics Costs

The advisory has been issued in the backdrop of representations received from various stakeholders in the export-import (EXIM) sector regarding the imposition of multiple ancillary charges by shipping lines and their agents. According to the DGS, these charges are often perceived as non-transparent and have contributed to escalating logistics costs across the supply chain, particularly during the current geopolitical tensions and war-like situation affecting global trade routes.

The DGS noted that the Merchant Shipping Act, 1958 was enacted to foster the development and efficient maintenance of India’s mercantile marine in a manner that serves national interests. It also referred to the Multimodal Transportation of Goods Act, 1993, which governs the registration and regulation of Multimodal Transport Operators (MTOs).

The advisory further highlighted earlier guidance issued through DGS Circular No. 1 of 2016 dated September 7, 2016, along with a clarification issued on December 26, 2016, which had similarly urged shipping lines and industry stakeholders to avoid levying certain charges and to ensure transparency in the pricing of services related to EXIM cargo transportation.

In addition, the Directorate pointed to provisions under the Merchant Shipping Act, 2025, recently assented to by the President of India. Section 317 of the Act provides an enabling provision for ensuring transparency in charges levied by service providers or agents in relation to vessels operating for import, export or domestic transportation of goods. The provision empowers the Central Government to direct service providers or agents to clearly specify all applicable charges—including both fixed and conditional charges—in the Bill of Lading or any other transport document issued to exporters, importers, consignors or consignees in India.

In view of the above, the Directorate has advised all shipping lines, carriers and their agents to refrain from predatory, non-transparent and opportunistic pricing practices, particularly those involving exorbitant charges that take undue advantage of prevailing geopolitical developments.      The advisory also calls upon service providers to adhere to fair trade practices, avoid levies that could trigger disputes within the EXIM community, and ensure that all applicable charges are communicated clearly and upfront to exporters, importers and other stakeholders.

The Directorate expressed its expectation that all stakeholders in the maritime logistics chain will cooperate in maintaining transparency and fairness in commercial practices. Such cooperation, it said, is essential for facilitating trade, reducing logistics costs and improving the ease of doing business in India.      The advisory has been issued with the approval of the Director General of Shipping and Additional Secretary to the Government of India and has been signed by Nebu Oommen, Deputy Director General of Shipping.