Whalesbook
The Basmati Rice Farmers & Exporters Development Forum (BRFEDF) is urging the government to take decisive action against shipping charges they call 'arbitrary and opaque.' These costs, worsened by the West Asia crisis, are making many export operations unprofitable.
Forum Chairperson Priyanka Mittal said war-risk surcharges have jumped significantly, from $800 to $6,000 per container. Added without warning, these fees can now make up 60% to 70% of the cargo's total value. 'Exporters are effectively being asked to cover unlimited financial risks for situations they cannot control,' Mittal stressed.
Current geopolitical tensions in West Asia have led shipping lines to divert cargo to ports like Jebel Ali, Sohar, and Salalah. Containers are also being held at transfer hubs with no clear plans for onward travel, and sometimes sent back to their starting ports. Exporters argue they must pay the full cost of these moves, which are made without their agreement.
Exporters Seek Regulatory Clarity
BRFEDF has made specific requests: shipping fees should only cover actual services. Shipping companies must release containers without holding them over disputed payments. Clear rules are also needed for handling cargo during geopolitical unrest. India's Directorate General of Shipping has noted the complaints and passed them to an inter-ministerial group, but the situation on the ground has not improved.
Impact on Small Businesses
Smaller exporters are suffering the most. The forum pointed out the huge difference in bargaining power between big global shipping companies and individual traders. This leaves many small businesses with few options, leading some to consider abandoning their cargo as charges pile up. Mittal warned that not fixing these issues could weaken trust in India's trade system.