FFFAI writes to govt against shipping lines imposing war risk surcharges

New Delhi: Industry body FFFAI has sought government intervention to resolve issues being faced after shipping lines' decision to impose war risk surcharges on shipments in the wake of West Asia crisis.

Shipping lines have started levying war risk surcharges (WRS) on cargo moving to and from certain destinations, Federation of Freight Forwarders' Associations in India (FFFAI) said in a letter to the Ministry of Ports, Shipping and Waterways.

Seeking government intervention, the body said in several instances, the surcharge being demanded is nearly double the originally negotiated ocean freight, placing an unexpected and substantial financial burden on the trade.

"While we understand that extraordinary geopolitical circumstances may necessitate additional risk coverage, the manner in which these surcharges are presently being imposed has created considerable uncertainty and operational difficulty for exporters and logistics service providers," said FFFAI, which is the apex body of customs brokers association and logistics service providers in India.

In the letter sent on Monday, FFFAI said there have been several instances where vessels that sailed from one Indian port have been compelled to offload cargo at another Indian port due to the prevailing situation.

The association said it requests the ministry's intervention to ensure that transparent guidelines and uniform norms are issued for the implementation of WRS and related operational issues during the prevailing situation.