DG Shipping moves to curb ‘predatory’ pricing by shipping lines

India’s maritime regulator has stepped in after exporters raised concerns over “predatory and unnecessary charging” by shipping lines, invoking its powers to seek greater transparency in pricing, according to a report by TOI.

In a circular issued on Monday, the Directorate General of Shipping (DG Shipping) asked shipping companies and their agents to “refrain from predatory, non-transparent and opportunistic pricing practices” and directed that all charges be communicated upfront to exporters.

The move comes after exporters flagged the issue of retrospective war surcharges being levied by shipping companies during a meeting called by the regulator. According to exporters, the surcharge can go up to $4,000 for perishables and about $3,000 for every 40-foot container.


“The levy is being imposed on vessels which had reached before the surcharge kicked in. It is an unnecessary burden and DG Shipping has promised to look into it,” Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said, according to TOI.

Officials indicated that the regulator may invoke provisions under the Merchant Shipping Act, which prescribes transparency norms for shipping charges. However, the advisory is not intended to fix prices.

“It will be an advisory to shipping lines to desist from taking advantage of the situation by opportunistic pricing. We are not fixing prices,” an official told the newspaper.

Exporters, however, said implementation could be difficult in the case of foreign-flagged vessels. Industry sources also said shipping lines are demanding additional payments for consignments of fruits and vegetables that are stuck in transit and risk spoiling on arrival.

Exporters also raised concerns about cargo being abandoned by shipping lines at certain ports. “How do we get items from these ports? It is very difficult to deal with this,” Sahai was quoted as saying.

According to industry estimates cited by TOI, Indian exports worth $8–10 billion could be affected if the ongoing conflict in West Asia continues through the month.

Discussions are underway to operate smaller vessels or non-vessel operating common carriers from India to West Asia to move essential goods, though industry players said viability remains uncertain.

People familiar with the discussions said the UAE government is considering providing logistical support to ease shipments.

“It will provide some relief. But higher bunker oil and other charges may not make it possible to get to the pre-war levels,” Dev Garg, vice-president of the Indian Rice Exporters’ Federation, told TOI.

Marine fuel prices have surged from about $520 per metric tonne to around $880, while insurance costs have also risen, adding to exporters’ burden.

“UAE is the second-largest destination for India and exports will be hit badly by the disruption. The government must come to our rescue,” FIEO vice-president Ravikant Kapur said, according to TOI.

With inputs from TOI