Freight downturn prompts MSC’s significant B/L charge hike in India, aiming to bolster balance sheets amid profitability challenges.
Charge Hikes
Effective December 22, the carrier will raise seaway B/L fees by 60% to 6,500 rupees per document, up from the existing 4,250 rupees, reflecting a new commercial strategy.
MSC applies updated scale to all Indian exports, including inland container depot containers, with increased container seal fees to $8 per box.
The carrier’s hike in non-negotiable seaway bill charges affects regular client prepaid shipments, aiming for faster clearance.
Revenue Streams
Industry anticipates broader changes in documentation fees following MSC’s move amid failed freight rate increases. Carriers profit from export/import documentation fees, each vessel call generating over 500 B/Ls on Indian trade routes.
Mumbai forwarders highlight this revenue source, expecting other lines like Hapag-Lloyd and Maersk to swiftly follow suit to secure substantial income.
Regulatory Restraints
Cargo interests push back against rising export/import costs, prompting governments like Dubai’s DPA to restrict terminal handling charge collections by carriers and intermediaries.
Regulatory frameworks aim to curb markups, seeking transparency, but market forces largely dictate shipping costs, making complete elimination improbable, note industry observers.
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Source: The Load Star
