DG Shipping Mandates Direct Port Concessions for Exporters; Issues Gulf Safety Advisory
By Cygnus | 09 Apr 2026
Summary
- The Directorate General of Shipping (DG Shipping) has instructed all ports and terminals to pass logistical concessions directly to exporters, discontinuing post-facto reimbursement models.
- The directive supports the Rs 497 crore RELIEF scheme, which provides credit insurance and logistics assistance for cargo affected by West Asia maritime disruptions.
- A safety advisory urges Indian seafarers in Iranian waters to stay vigilant, coordinate movements with authorities, and utilize employer-provided 24x7 psychological support.
NEW DELHI, April 9, 2026 — To prevent financial strain on exporters amid ongoing West Asia tensions, the Directorate General of Shipping (DG Shipping) has directed ports and terminals to ensure that all logistical concessions are reflected immediately in bills rather than reimbursed later.
Ending the Reimbursement Bottleneck
In a circular issued on April 8, DG Shipping highlighted that certain terminal-level concessions—including detention charges, ground rent, and reefer plug-in fees—were often reimbursed only after cargo had cleared, creating delays and uncertainty for exporters.
"Reimbursement or post-facto claim mechanisms are to be discontinued," the regulator said, citing Section 317 of the Merchant Shipping Act, 2025. All approved concessions must now appear upfront in terminal bills, ensuring transparency for exporters navigating the Gulf shipping environment.
Supporting the Rs 497 Crore RELIEF Scheme
This directive is part of the Resilience and Logistics Intervention for Export Facilitation (RELIEF) scheme, launched in March 2026. The program offers insurance and logistical support for exports to countries affected by regional conflicts, including the UAE, Saudi Arabia, and Iran. About Rs 282 crore of the fund is earmarked for MSMEs. By mandating direct pass-through of concessions, the government aims to reduce extra costs imposed by conflict-related risks.
Safety Advisory for Seafarers
DG Shipping has also issued a high-priority advisory for Indian seafarers operating near the Strait of Hormuz and Iranian waters.
- Personnel ashore are advised to remain indoors and coordinate movements with the Indian Embassy.
- Vessels must maintain a 24x7 watch.
- Shipping companies are required to provide psychological counseling and emergency support to crew and their families, recognizing the mental toll of operating in high-risk zones.
Why this matters
- Auditability: Shipping lines must now document all additional charges for cargo diversion or risk, reducing potential opportunistic pricing.
- MSME Protection: Direct concessions prevent smaller exporters from waiting weeks for reimbursements, preserving working capital.
- Human Factor: The directive emphasizes mental health support for seafarers in conflict-affected areas.
FAQs
Q1. What is the RELIEF scheme?
It is a government fund that covers additional insurance and logistics costs for exports to conflict-affected countries, including the UAE, Saudi Arabia, Iran, and Israel.
Q2. Can shipping lines still charge for cargo diversion?
Yes. However, every charge must now be formally documented, quantified in monetary terms, and proportionally aligned with actual risk premiums.
Q3. How should families of seafarers stay informed?
They should maintain regular contact with the shipping company’s 24x7 control center, which is required to provide situational updates and counseling.