DG Shipping Tells Ports To Pass On Benefits Upfront To War-Affected Exporters

(MENAFN- KNN India) New Delhi, Apr 10 (KNN) The Directorate General of Shipping (DG Shipping) has directed ports and terminal operators to immediately pass on concessions to exporters affected by stranded Gulf-bound cargo, and discontinue reimbursement-based mechanisms that delay relief.

In a circular dated April 8, the regulator noted that concessions such as detention charges, ground rent and reefer plug-in costs were not being uniformly transferred to exporters, despite being approved by port authorities.

Direct transfer of benefits mandated

DG Shipping observed that terminal operators typically charge Non-Vessel Operating Common Carriers (NVOCCs) upfront and later reimburse them, resulting in delays in passing benefits to exporters, reported The Economic Times.

Terming this a 'circuitous process,' the regulator has now mandated that all concessions approved by port authorities must be passed on directly and transparently to stakeholders, including freight forwarders and NVOCCs, who must in turn reflect these benefits to exporters.

Reimbursement or post-facto claim mechanisms have been discontinued with immediate effect. Port authorities have been tasked with monitoring compliance to ensure timely transfer of benefits.

Scrutiny of additional charges

The regulator also flagged instances where shipping lines imposed additional charges for cargo diversion or discharge at alternate ports, including for Back-to-Town (BTT) consignments, without adequate documentation.

It has directed that all such charges must be formally recorded, time-stamped, and clearly quantified. The move is aimed at enabling exporters to claim support under the government's Rs 497 crore Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme. Shipping lines have been instructed to maintain full transparency and auditability in such cases.

War-risk premium under review

DG Shipping also raised concerns over revisions in the war-risk premium (WRP) levied on cargo, stating that such changes may not align with earlier directions. The matter is being taken up with insurance providers, including Protection and Indemnity (P&I) Clubs, in coordination with GIC Re.

Shipping lines have been directed to proportionately reflect any revision in WRP in freight charges. Any deviation or non-alignment between actual risk premiums and freight components will be subject to review and action.

The circular reiterated that provisions under the Merchant Shipping Act, 2025 empower the government to ensure transparency in shipping-related charges, including requiring clear disclosure of all costs in documents such as the Bill of Lading.

(KNN Bureau)

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