FFFAI urges government action on war risk surcharges affecting Indian exports

Summary

The Federation of Freight Forwarders’ Associations in India (FFFAI) has called on the Ministry of Ports, Shipping and Waterways to regulate rising "War Risk Surcharges" (WRS) imposed by global carriers amid heightened tensions in West Asia. Shipping lines are reportedly charging between $1,500 and $4,000 per container, significantly increasing costs for exporters.

NEW DELHI, March 18, 2026 — The Federation of Freight Forwarders’ Associations in India (FFFAI) has urged government intervention to prevent arbitrary war risk surcharges on shipments to the Middle East following geopolitical tensions in the region.

In a letter to the Ministry of Ports, Shipping and Waterways, the industry body noted that several carriers have introduced WRS ranging from $1,500 for standard containers to up to $4,000 for refrigerated units. These levies, added on top of standard freight charges, are significantly increasing the cost of exports, particularly for sectors such as pharmaceuticals, perishables, and engineering goods.

FFFAI highlighted that some vessels departing Indian ports faced rerouting or offloading mid-transit due to insurance and port access issues in the Persian Gulf, leading to additional storage and handling fees at ports like Mundra and Nhava Sheva.

Government Response and Oversight

The Ministry of Ports, Shipping and Waterways has appointed Dr. Sudhir Kohakade, Deputy Director General of Shipping, as a Nodal Officer to monitor and address complaints regarding these surcharges. Carriers have been instructed to maintain transparency in calculating WRS and to avoid pricing practices that could be deemed "opportunistic" or predatory.

DG Shipping Circular No. 15 of 2026 emphasizes that while surcharges reflecting genuine operational risk are permissible, sudden, flat-rate increases unrelated to actual costs are under scrutiny. The move seeks to protect India’s export competitiveness during ongoing disruptions in the Strait of Hormuz.

Why this matters

• Export Competitiveness: Excessive surcharges can make Indian goods less competitive in key West Asian markets.
• Supply Chain Resilience: Government monitoring reinforces the importance of maritime logistics as a critical component of trade infrastructure.
• Energy Imports: Shipping delays are also affecting the timely import of LPG and other critical commodities.

FAQs

Q1. What is the current range of War Risk Surcharges?

$1,500–$4,000 per container depending on cargo type and carrier.

Q2. Who is the point of contact for complaints?

Dr. Sudhir Kohakade, DG Shipping Nodal Officer, can handle exporter grievances.

Q3. Is the Strait of Hormuz closed?

It is effectively restricted for commercial shipping due to insurance and security risks, making passage economically unviable for many vessels.

Q4. Are these surcharges legal?

Carriers can levy surcharges for genuine risk, but the Indian government has advised transparency and warned against predatory pricing.