Shipping Lines Under Fire: FFFAI Urges Government to Intervene on War Risk Surcharges

The Federation of Freight Forwarders' Associations in India (FFFAI) has called on the government to address issues arising from shipping lines' imposition of war risk surcharges. These additional fees due to the West Asia crisis are causing financial strains on exporters and logistics providers, creating operational uncertainty.

The Federation of Freight Forwarders' Associations in India (FFFAI) has appealed to the government for urgent intervention over the imposition of war risk surcharges by shipping lines. These additional charges have been applied due to the ongoing crisis in West Asia, impacting cargo shipments significantly.

The FFFAI, in a letter to the Ministry of Ports, Shipping and Waterways, highlighted that the war risk surcharge (WRS) is nearly double the originally negotiated ocean freight in many cases. This unexpected financial burden is creating considerable operational difficulties for exporters and logistics providers.

FFFAI emphasized that while geopolitical tensions might justify added risk coverage, the current manner of enforcement has resulted in uncertainty. The association urged for transparent guidelines and consistent norms to be established for WRS implementation to ensure fair practices across the industry.

(With inputs from agencies.)