Regulators Push Back on Shipping Surcharges as Hormuz Disruption Ripples Globally

Indian shipping regulators and related authorities are keeping a close watch on ongoing supply chain dynamics for export trades as ocean carriers arguably tend to profiteer from capacity disruption, especially in a larger crisis situation. Following recent tensions in the Strait of Hormuz, several major carriers have announced 'War Risk' and 'Emergency Contingency' surcharges. The Directorate General of Shipping (DGS) in India has received complaints from exporter bodies regarding the lack of transparency in these costs. This regulatory pushback mirrors previous actions taken during the Red Sea crisis, aiming to prevent inflationary pressure on Indian exports and ensure fair competition in the maritime sector.