Proposed Boycott of MSC Export Shipments in Chennai from November 15; Maersk’s Revised Tariffs at Mundra add to Concerns Over Rising Logistics Costs
CHENNAI/MUNDRA : A growing dispute over empty container handling charges and their collection through nominated third-party container depots has triggered concerns across India’s shipping and logistics industry, with customs brokers raising objections to the revised tariff structures and payment arrangements adopted by certain shipping lines.
The issue has gained prominence following Maersk’s substantial revision of lift-on/lift-off (LO-LO) charges for empty containers at Mundra Port and a decision by the Chennai Customs Brokers Association (CCBA) to threaten a boycott of MSC export shipments from November 15, 2026, unless the shipping line withdraws its existing arrangement for collecting such charges through nominated third-party container yards.
The developments have brought into focus wider concerns surrounding transparency in the determination and collection of container-related charges, the role of private depot operators and the increasing financial burden on customs brokers, exporters and other EXIM trade stakeholders.
Maersk More Than Doubles Empty Container Handling Charges at Mundra
At Mundra, Maersk has reportedly revised its LO-LO charges for empty containers with effect from November 1, 2026, introducing a significant increase in the amounts payable for handling empty boxes.
Under the revised tariff, the charge for a 20-foot empty container has increased from US$23 to US$51, while the charge for a 40-foot empty container has gone up from US$31 to US$67.
The revised rates represent increases of approximately 122% and 116%, respectively, placing additional cost pressure on businesses involved in containerised cargo movements.
The revised arrangement reportedly requires customers to make payments directly to the nominated depot service providers responsible for handling the empty containers.
The substantial revision has raised questions among trade stakeholders about the basis for such increases, the mechanism governing the collection of these charges and the extent to which exporters, importers and their logistics partners can influence or verify the charges levied by nominated service providers.
Chennai Customs Brokers Take a Firm Stand Against Third-Party Collections
The dispute has taken a more pronounced turn in Chennai, where the Chennai Customs Brokers Association has decided to oppose MSC’s existing mechanism for collecting LO-LO charges through nominated third-party empty container yards.
At an Extraordinary General Body Meeting held on October 29, 2026, the association unanimously resolved to boycott MSC export shipments from November 15 if the shipping line does not withdraw the disputed collection arrangement.
The association has also indicated that it may extend the proposed boycott to MSC import consignments from December 15, 2026, should the matter remain unresolved.
According to CCBA President S. Natarajan, the association’s principal concern is not the payment of legitimate operational charges but the manner in which these amounts are determined and collected.
The association maintains that charges relating to shipping line services should be raised and collected directly by the concerned shipping lines through their authorised invoicing systems, rather than placing the collection responsibility with privately operated third-party depot service providers.
Customs brokers have expressed concerns over the absence of sufficient transparency in the tariff-setting process, the possibility of arbitrary increases and the lack of clarity regarding accountability when additional charges are disputed by cargo owners.
Rising Charges Create Financial Pressure on Customs Brokers
The association has also highlighted the financial difficulties faced by customs brokers, who frequently have to coordinate payments on behalf of exporters and importers while extending credit facilities to their clients.
According to CCBA, customs brokers in Chennai often provide credit periods of nearly two months or even longer after cargo clearance. When additional charges are imposed by third-party service providers, brokers may find themselves responsible for making payments upfront while facing delays or resistance in recovering the amounts from their customers.
This situation could expose customs brokers to additional working-capital requirements and commercial risks, particularly when there is disagreement over the legitimacy or quantum of the charges.
The association has further pointed to the sharp escalation in empty container handling charges at certain Indian ports. It has cited instances where charges that were approximately ₹1,000 around five years ago have reportedly increased to ₹7,500–₹8,000 at some locations.
In contrast, the corresponding charges in Chennai are stated to be in the range of approximately ₹800–₹1,000.
These figures, cited by the association, have intensified concerns within the trade community about the absence of a transparent and consistent approach towards empty container handling tariffs across ports.
Concerns Extend Beyond Mundra and Chennai
The issue is not confined to the two ports where the recent developments have attracted attention.
Industry reports indicate that similar third-party collection arrangements are also being followed by certain shipping lines at Jawaharlal Nehru Port Authority (JNPA), Nhava Sheva, where nominated empty container yards are reportedly collecting LO-LO charges directly from shippers.
There are also concerns that other shipping lines may consider introducing similar arrangements at Mundra.
CCBA has indicated that its objections could extend beyond MSC if comparable practices are adopted by other shipping companies, including Maersk, Hapag-Lloyd and CMA CGM.
Such a development could widen the dispute and bring more shipping lines, container depots and trade associations into the debate over the appropriate mechanism for levying and collecting empty container handling charges.
Potential Impact on India’s EXIM Trade
The growing disagreement comes at a time when India is seeking to strengthen its international trade competitiveness, expand exports and improve the efficiency of its logistics ecosystem.
Container handling costs, repositioning expenses and empty container movements form an important part of the overall logistics cost structure. Any significant increase in these expenses can have a cascading effect on exporters, importers, freight forwarders, customs brokers and other supply chain participants.
For exporters operating on tight margins, additional charges can affect shipment economics and competitiveness in overseas markets. Importers may also face higher landed costs, while customs brokers and freight forwarders could encounter increased financial exposure when required to facilitate payments on behalf of their customers.
More importantly, if the proposed boycott in Chennai proceeds, it could create operational challenges for exporters using MSC services through the port, depending on the participation of customs brokers and the availability of alternative arrangements.
The situation therefore calls for constructive engagement between shipping lines, customs brokers, depot operators and the wider EXIM trade community.
Need for Greater Transparency and Industry Consultation
The emerging controversy highlights the importance of establishing clear and transparent procedures for the determination, communication and collection of empty container handling charges.
While shipping lines and container depot operators have their respective commercial and operational responsibilities, the trade community needs clarity on the services covered by such charges, the authority under which they are levied, the basis for tariff revisions and the party accountable for addressing disputes.
Direct invoicing by shipping lines, advance communication of revised tariffs, clearly documented service arrangements and an effective grievance-redressal mechanism could help minimise misunderstandings and prevent unnecessary friction between service providers and cargo owners.
The developments at Mundra, Chennai and JNPA have placed an important industry issue in the spotlight. How the concerned parties address the dispute could have implications extending well beyond individual shipping lines or container terminals.
For India’s maritime logistics sector, maintaining a transparent, predictable and commercially sustainable cost structure is essential to ensuring smooth cargo movement and supporting the country’s ambitions to become a more competitive global trading and logistics hub.
