New bill aims to ensure transparency by requiring service providers to reveal all user charges upfront
The Merchant Shipping Bill, currently under discussion in the Lok Sabha, seeks to make it mandatory for maritime service providers to disclose all charges levied on users in advance. This move is designed to increase transparency in shipping-related costs, addressing a longstanding demand from exporters and importers.
Under the bill, agents handling Indian vessels or foreign vessels operating in coastal waters for import, export, or domestic cargo transport must list all fixed and conditional charges in the Bill of Lading or equivalent transport documents. These charges must also be made publicly available, such as on company websites, ensuring users are fully aware of costs before engaging services.
However, the bill does not regulate freight rates, which will continue to be governed by market dynamics. Instead, it focuses on transparency in ancillary fees.
The Central Government is empowered to define the terms for charge disclosures through official notifications. Failure to comply could result in penalties of up to ₹5 lakh.
The bill, which will replace the Merchant Shipping Act of 1958, is seen as a critical step toward fairer practices in India’s maritime logistics ecosystem.
Source: ET Infra
