“Clear Seas, Clear Charges – Transparency Anchored by Law.”

Merchant Shipping Bill Mandates Transparency in Maritime Charges, But Leaves Freight to Market.

The Merchant Shipping Bill, currently under discussion in the Lok Sabha, seeks to enhance transparency in maritime logistics by making it mandatory for service providers and agents of Indian and foreign vessels in coastal waters to disclose all user charges upfront. While the Bill does not regulate freight rates, which remain market-driven, it compels providers to list both fixed and conditional charges in the Bill of Lading or any transport document, accessible via their websites. The move addresses long-standing demands from exporters and importers for clarity on hidden charges. The Bill empowers the Central Government to prescribe the terms for such disclosure and prohibits charging beyond what’s documented. Violations may invite penalties of up to ₹5 lakh. This reform, which replaces the Merchant Shipping Act of 1958, aims to protect users, foster trust, and simplify maritime logistics transactions in India’s growing shipping ecosystem.