Indian Ports Hike Terminal Charges, Deepening Cargo Cost Crisis

Terminal operators at major Indian ports, including DP World's Mundra facility, have substantially increased container handling charges (THCs), adding another cost layer to cargo owners already struggling with Middle East-related surcharges. Because carriers typically collect THCs on behalf of shippers, these price increases create a dual pain point: immediate cost escalation for cargo owners and markup opportunities for container lines. This represents a concerning trend where port terminals are leveraging supply chain disruptions to opportunistically raise fees, transforming what should be a relatively stable operational cost into a volatile expense driver.

The timing is particularly acute given existing market pressures from regional geopolitical tensions that have already inflated surcharges across Asian shipping lanes. For supply chain professionals managing India-bound or India-origin cargo, this development signals the need for immediate contract review and cost modeling adjustments. The opportunistic nature of these increases suggests they may not be temporary responses to isolated cost pressures, but rather a structural shift in how terminal operators are pricing services in a high-disruption environment.

This development has broader implications for sourcing strategies and carrier relationships in South Asian supply chains. Organizations should reassess the true landed cost of Indian port services, potentially explore alternative gateway ports, and consider whether existing carrier contracts adequately protect against terminal fee escalation. The trend also underscores the vulnerability of supply chains dependent on centralized port infrastructure when operators exercise pricing power during periods of market stress.