FFFAI Urges Government Action as War Risk Surcharge Disrupts Shipping Trade
Industry Body Flags Rising Costs and Operational Uncertainty Amid West Asia Crisis
New Delhi, March 18The Federation of Freight Forwarders' Associations in India (FFFAI) has called for immediate government intervention following the imposition of war risk surcharges (WRS) by shipping lines amid the ongoing West Asia crisis.
In a letter addressed to the Ministry of Ports, Shipping and Waterways, the industry body highlighted that shipping companies have begun levying additional charges on cargo shipments to and from certain destinations, significantly impacting trade operations.
Surcharge Burden Nearly Doubles Freight Costs
According to FFFAI, in multiple cases, the war risk surcharge has been nearly double the originally negotiated ocean freight rates. The association stated that this has created an unexpected and substantial financial burden for exporters and logistics service providers.The body acknowledged that geopolitical tensions may require additional risk coverage. However, it emphasized that the current implementation of these surcharges lacks consistency and clarity, leading to widespread uncertainty in the sector.
Cargo Diversions Add to Operational Challenges
FFFAI also pointed to operational disruptions caused by the evolving situation. It noted instances where vessels departing from one Indian port were forced to offload cargo at a different domestic port due to prevailing conditions, further complicating logistics planning and execution.Call for Transparent Guidelines and Uniform Norms
The association has urged the government to step in and establish clear and transparent guidelines for the application of war risk surcharges. It has also requested the introduction of uniform norms to address related operational challenges during the ongoing crisis.FFFAI stated that timely intervention would help stabilize trade operations and reduce uncertainty for stakeholders across the logistics and export ecosystem.
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