A growing dispute over empty container handling charges and depot collection practices is threatening to disrupt container logistics operations at major Indian ports, with customs brokers warning of a possible cargo boycott against shipping lines.
The controversy has intensified following a sharp increase in lift-on/lift-off (LO-LO) charges for empty containers at Mundra Port by Maersk, alongside growing opposition from customs brokers in Chennai against shipping lines transferring the collection of depot-related charges to third-party service providers.
Effective November 1, Maersk more than doubled its LO-LO charges for empty containers handled through Mundra. The charge for a 20-foot empty container has increased from $23 to $51, while the rate for a 40-foot container has risen from $31 to $67, excluding applicable local taxes.
The carrier has instructed customers to make the necessary arrangements for the revised charges and settle payments directly with its nominated depot service providers.
The move has raised concerns among freight forwarders, customs brokers and other supply chain intermediaries, particularly over the transparency and accountability of charges collected by third-party depot operators.
Chennai Brokers Threaten Boycott Against MSC
In Chennai, the Chennai Customs Brokers Association (CCBA) has taken a strong position against the practice of routing empty container-related charge collections through third-party depot vendors.
The association has alleged that the arrangement creates opportunities for unregulated tariff increases, placing additional financial and operational burdens on customs brokers and other cargo intermediaries.
According to the association, MSC has taken the lead in implementing the collection arrangement at Chennai, with other shipping lines subsequently adopting similar practices.
The CCBA has warned that its members are increasingly caught between shipping lines, depot operators and cargo owners, as exporters and importers are reportedly unwilling to reimburse additional charges passed on to them.
The association has therefore threatened to boycott MSC shipments if the existing collection arrangement is not reversed by November 15, 2026. It has also indicated that the same approach would be extended to other shipping lines introducing similar depot arrangements.
Mundra and Nhava Sheva Also Face Industry Concerns
The issue is no longer confined to Chennai. At Mundra, industry sources expect other shipping lines to introduce similar changes to their empty container handling and payment arrangements.
Some carriers operating through Jawaharlal Nehru Port Authority (JNPA), Nhava Sheva, have also reportedly started allowing nominated container yards to collect LO-LO charges directly from shippers, despite resistance from sections of the cargo-handling community.
Industry stakeholders fear that shifting charge collection to third-party depot operators without clearly defined tariff structures could lead to inconsistent pricing and additional costs across India’s container logistics network.
Additional Cost Burden on Exporters and Importers
Freight forwarders and logistics intermediaries have expressed concern that the additional charges will ultimately be passed on to exporters and importers, increasing the overall cost of international trade.
The dispute also raises questions about the responsibility of customs brokers and freight forwarders when customers refuse to reimburse additional charges imposed by depot operators.
The developments come at a time when the Indian logistics sector is seeking greater cost transparency, operational efficiency and reduced intermediary costs to strengthen the competitiveness of Indian exports.
With the November 15 deadline approaching, the response of MSC and other shipping lines will be closely watched by the trade community. A wider adoption of third-party depot collection arrangements, coupled with resistance from customs brokers, could create fresh operational challenges at India’s major container gateways.