Mumbai, March 10 The Directorate General of Shipping, the regulatory body for the shipping sector, has advised shipping companies, vessel operators, and agents to refrain from "predatory, non-transparent, and opportunistic pricing practices" in the wake of disruptions caused by the conflict in West Asia, according to sources.
In an advisory issued on Monday, the DGS also asked them to ensure that all applicable charges are clearly communicated to exporters, importers, and other stakeholders.
The DGS advisory came after the regulator received representations from various stakeholders in the EXIM trade regarding the imposition of multiple ancillary charges by shipping lines/carriers and their agents.
These charges are perceived to be "non-transparent and opportunistic in nature," resulting in an escalation in transaction costs in the logistics chain, the DGS said.
In addition, it stated that they appear to be taking undue advantage of the prevailing geopolitical tensions and the war-like situation.
"In the interest of promoting transparency, fairness, and predictability in the EXIM logistics ecosystem, all shipping lines, carriers, and their agents are hereby advised to refrain from predatory, non-transparent, and opportunistic pricing practices, including the imposition of exorbitant charges, thereby taking undue advantage of the prevailing geopolitical situation," the advisory stated.
"They must adhere to fair trade practices and avoid imposing charges that may give rise to disputes within the EXIM trade, and they must ensure that all applicable charges are clearly communicated to exporters, importers, and other stakeholders," it added.