Why are customs brokers specifically opposed to third-party depot collection of container charges?

According to the Chennai Customs Brokers Association, the primary concern is lack of transparency and accountability in charge determination and collection. Customs brokers typically provide credit facilities to exporters and importers for up to two months after cargo clearance. When third-party depot operators collect charges directly, brokers face working capital strain and difficulty recovering amounts from customers who dispute charges. The association argues that shipping line service charges should be invoiced directly by carriers through their own billing systems, not by private operators, to ensure clarity on services rendered, authority for levying charges, and accountability when disputes arise.

What are the specific tariff increases Maersk implemented at Mundra Port?

Effective November 1, 2026, Maersk revised empty container LO-LO charges at Mundra Port: 20-foot containers increased from USD 23 to USD 51 (122% increase) and 40-foot containers increased from USD 31 to USD 67 (116% increase). These represent significant cost escalations that place additional financial burden on exporters, importers, and logistics intermediaries. The article notes that similar rapid increases have occurred across Indian ports, where charges have reportedly risen from approximately 1,000 rupees five years ago to 7,500-8,000 rupees at certain locations, though Chennai rates remain lower at 800-1,000 rupees.

What is the timeline and scope of the Chennai customs brokers boycott?

The Chennai Customs Brokers Association voted unanimously at an Extraordinary General Body Meeting on October 29, 2026, to boycott MSC export shipments beginning November 15, 2026. The association indicated it may extend the boycott to MSC import consignments from December 15, 2026, if the dispute remains unresolved. The boycott could potentially expand to include other shipping lines such as Maersk, Hapag-Lloyd, and CMA CGM if they adopt similar third-party collection arrangements. This threatens to disrupt container movement through Chennai Port, one of India's major gateways for containerized cargo.

How does this dispute affect exporters and their landed costs?

For exporters operating on tight margins, these tariff increases directly reduce shipment economics and international competitiveness. The 122% increase in 20-foot container handling fees at Mundra translates to approximately USD 28 additional cost per empty container repositioned, which can be substantial for export-intensive operations. When multiplied across shipment volumes and combined with potential operational disruptions from boycotts, exporters face both direct cost increases and supply chain execution risk. The absence of advance tariff communication compounds this uncertainty, making forward cost estimation and pricing strategy difficult.

What is the broader implication for India's logistics competitiveness?

The article emphasizes that container handling costs and empty container repositioning are critical components of India's overall logistics cost structure. Unilateral, non-transparent increases in these charges undermine India's stated goal of strengthening international trade competitiveness and expanding exports. If boycotts or operational disruptions occur across multiple ports and shipping lines, the cumulative effect could increase landed costs for Indian exporters relative to competitors in other regions, reduce port throughput efficiency, and damage India's reputation as a predictable trade partner. Resolution requires establishing transparent tariff-setting procedures, advance communication protocols, documented service arrangements, and effective grievance mechanisms across the industry.

Shipping & Freight

High Impact

Indian Customs Brokers Threaten MSC Boycott Over Container Charges

Nov 11, 2026

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The signal

The Indian shipping and logistics industry faces escalating tensions over empty container handling charges and collection mechanisms. The Chennai Customs Brokers Association has announced a boycott of MSC export shipments beginning November 15, 2026, unless the carrier reverses its practice of collecting lift-on/lift-off (LO-LO) charges through nominated third-party depot operators rather than directly invoicing. Simultaneously, Maersk has implemented dramatic increases in empty container handling charges at Mundra Port, raising 20-foot container fees from USD 23 to USD 51 (122% increase) and 40-foot fees from USD 31 to USD 67 (116% increase), effective November 1, 2026.

This dispute reflects deeper concerns about tariff transparency, payment accountability, and the financial exposure faced by customs brokers who typically extend credit to exporters and importers while managing payments to service providers. The issue extends across multiple Indian ports, with similar third-party collection arrangements reported at JNPA and Nhava Sheva, raising the possibility of industry-wide disruption if other major carriers adopt comparable practices. The potential for the boycott to expand to other shipping lines, including Hapag-Lloyd and CMA CGM, threatens to create operational bottlenecks for India's export-oriented economy at a critical time when the country is seeking to enhance trade competitiveness.

For supply chain professionals, this represents a structural risk to logistics cost predictability and port-level operational resilience in South Asia's gateway markets. The combination of unilateral tariff increases and opaque collection mechanisms threatens working capital management for freight forwarders and customs brokers, potentially cascading higher costs to exporters already operating on tight margins.

Companies affected by this story:

C.H. Robinson

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

immediate

What if the MSC boycott extends to all major carriers and disrupts Chennai Port operations?

Simulate a scenario where the Chennai customs brokers boycott expands from MSC to include Maersk, Hapag-Lloyd, and CMA CGM, covering an estimated 60-70% of containerized throughput at Chennai Port. Model reduced container handling capacity, increased vessel delays, congestion at alternative ports, and exporters shifting cargo to Mundra, JNPA, or Nhava Sheva. Assess impact on lead times, port-to-destination transit time increases, inventory buffers required by exporters, and container repositioning costs. Estimate revenue loss for Chennai Port and diversion patterns across competing gateways.

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Simulation Suggestion

this month

What if empty container handling charges increase 150% across all major Indian ports?

Model the impact of empty container handling charges increasing by 150% (consistent with or exceeding Maersk's Mundra increases) uniformly across Mundra, Chennai, JNPA, and Nhava Sheva ports. Assume changes affect both import and export containers, apply to all shipping lines, and take effect immediately. Calculate cumulative cost impact on export-oriented supply chains, adjusted landed costs for importers, and working capital requirements for customs brokers and freight forwarders managing multiple shipments. Assess breakeven pricing and margin compression for logistics service providers.

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Simulation Suggestion

this month

What if third-party depot charges become non-recoverable from customers, straining broker working capital?

Model a working capital stress scenario where customs brokers, facing customer resistance to unexpected third-party depot charges, can only recover 70% of these amounts within their standard 60-90 day credit terms. Simulate the impact on broker cash flow, assuming average broker operations handle 500-1,000 containers monthly with 122% charge increases (Mundra level). Calculate additional working capital requirements, borrowing costs, and default risk exposure. Assess implications for broker pricing, credit policies, and potential service restrictions that could slow cargo clearance.

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