Indian exporters whose goods had managed to cross the Strait of Hormuz and docked safely at ports in West Asia are being asked to pay a contingency surcharge that could in some cases go up to $ 4000 a container before cargoes are unloaded. This has put exporters in a situation where the freight costs are much below the surcharge, which is creating a big problem for them, CEO and Director General of Federation of Indian Export Organizations Ajay Sahai said. The ships had crossed disturbed sea lanes before the conflict, so the extra charge makes little sense. In new cargo bookings exporters can adjust the enhanced costs by raising prices or getting into arrangements with the buyers but on the goods that have already reached destinations exporters are struggling for alternatives, including abandoning the goods, he added.

Contractual Deadlock The surcharge of $ 4000 is for a 40 feet container carrying perishables. For containers carrying hazardous items like chemicals surcharge is $ 3800 while for a 20 feet container the extra charges are $ 2000. As per the contract between the exporter and shipping line, the goods that are already handed over and the bill of lading has been issued so the risk should be borne by the shipping companies, Sahai said.

An estimated 150-200 ships are currently anchored outside the Strait, unable or unwilling to enter. Approximately 140 container vessels are reported trapped inside the Persian Gulf, according to reports.