The Federation of Freight Forwarders’ Associations in India has urged the Ministry of Ports, Shipping and Waterways to step in and address mounting challenges arising from the imposition of war risk surcharges (WRS) by global shipping lines in the wake of the ongoing West Asia crisis.
In a letter to the ministry, FFFAI highlighted that shipping lines have begun levying WRS on cargo moving to and from affected regions, significantly increasing logistics costs. In several cases, the surcharge is reportedly nearly double the originally negotiated ocean freight, placing a severe and unexpected financial burden on exporters, importers, and logistics service providers.
“While extraordinary geopolitical circumstances may warrant additional risk coverage, the current manner of imposing these surcharges has created considerable uncertainty and operational difficulties,” the association stated.
FFFAI, the apex body representing customs brokers and logistics service providers in India, also flagged operational disruptions caused by the evolving situation. It noted instances where vessels departing from one Indian port were compelled to offload cargo at alternative domestic ports due to security concerns and route disruptions.
The industry body has called for urgent government intervention to bring clarity and stability to the situation. It has requested the ministry to establish transparent guidelines and uniform norms governing the imposition of war risk surcharges, along with addressing associated operational challenges.
The move comes as escalating tensions in West Asia continue to disrupt global shipping routes, raising concerns over supply chain reliability and increasing cost pressures on India’s trade ecosystem.