DG Shipping warns Shipping Lines against Opportunistic Pricing in India’s EXIM Trade
MUMBAI: In a significant move aimed at safeguarding India’s export–import (EXIM) trade ecosystem, the Directorate General of Shipping (DG Shipping), under the Ministry of Ports, Shipping and Waterways, has issued an advisory urging shipping lines, carriers, and their agents to maintain transparency in transaction costs and refrain from imposing non-transparent or opportunistic charges.
The directive, issued through DGS Circular No. 14 of 2026 dated March 9, 2026, highlights concerns raised by various stakeholders regarding the levy of multiple ancillary charges in the logistics chain. These charges, according to the circular, are perceived as non-transparent and opportunistic, particularly amid ongoing geopolitical tensions and war-like situations affecting global shipping markets.
Concerns Over Rising Ancillary Charges
DG Shipping noted that industry stakeholders have made representations regarding the increasing imposition of additional fees by shipping lines and their agents. Such practices are believed to inflate transaction costs within the logistics chain and potentially exploit volatile market conditions caused by global geopolitical developments. DG Shipping Circular
The circular reiterates the government’s commitment to ensuring a fair and efficient maritime trade environment under the framework of the Merchant Shipping Act, 1958, which aims to foster the development and efficient maintenance of the Indian mercantile marine in alignment with national interests. It also references the Multimodal Transportation of Goods Act, 1993, which governs the registration and functioning of Multimodal Transport Operators (MTOs).
Emphasis on Transparency Under Merchant Shipping Act, 2025
The advisory further draws attention to provisions under the Merchant Shipping Act, 2025, which empower the Central Government to mandate greater transparency in charges levied by service providers or agents involved in the transportation of goods.
Under Section 317 of the Act, service providers may be required to clearly specify all charges—both fixed and conditional—in the Bill of Lading or other transport documents issued to exporters, importers, consignors, or consignees in India. DG Shipping Circular
Key Advisory to Shipping Lines and Agents
In the interest of promoting fairness, predictability, and transparency in India’s maritime logistics ecosystem, DG Shipping has advised shipping lines, carriers, and their agents to:
- Refrain from predatory, non-transparent, or opportunistic pricing practices, including the imposition of exorbitant charges.
- Avoid exploiting prevailing geopolitical situations to levy additional or unjustified fees.
- Follow fair trade practices and prevent disputes arising from arbitrary charges.
- Clearly communicate all applicable charges to exporters, importers, and other stakeholders in advance. DG Shipping Circular
Supporting Ease of Doing Business
DG Shipping emphasized that cooperation from all stakeholders in the maritime logistics chain is essential to ensure transparency and fairness in commercial practices. Such measures are expected to help reduce logistics costs, strengthen trust in the shipping sector, and support the government’s broader objective of improving the ease of doing business in India. DG Shipping Circular
The circular was issued with the approval of the Director General of Shipping and Additional Secretary to the Government of India.
Link to DG Shipping Circular
https://www.dgshipping.gov.in/writereaddata/ShippingNotices/202603091042479576067DGSCir14of2026.pdf