Shipping regulator flags ‘opportunistic’ freight charges

Mumbai/New Delhi: Shipping sector regulator Directorate General of Shipping (DGS) has advised shipping companies, vessel operators and agents to refrain from “predatory, non-transparent and opportunistic pricing” practices amid disruptions caused by the escalating West Asia conflict, according to sources.

The DGS also asked shipping lines to ensure that all applicable charges are communicated clearly and upfront to exporters, importers and other stakeholders. The regulator issued the advisory after receiving representations from stakeholders in the EXIM trade regarding the levy of multiple ancillary charges by shipping lines and their agents. These charges are perceived to be non-transparent and opportunistic, resulting in an escalation of transaction costs across the logistics chain. The DGS said such pricing practices appear to be taking undue advantage of the prevailing geopolitical tensions. “In the interest of promoting transparency, fairness and predictability in the EXIM logistics ecosystem, all shipping lines, carriers and their agents are hereby advised to refrain from predatory, non-transparent and opportunistic pricing practices, including levy of exorbitant charges taking undue advantage of prevailing geopolitical issues,” the advisory stated.