March 12th, 2026 – Indian and Chinese regulators are pushing back against rising container shipping surcharges linked to heightened conflict in the Middle East, warning carriers not to exploit the disruption by dramatically increasing costs for shippers.
China’s Ministry of Transport (MOT) recently held discussions with representatives from Maersk and Mediterranean Shipping Co. about international shipping operations. During those conversations, the ministry raised concerns about carriers suspending certain services between China and the Middle East and about the additional charges and higher freight rates being introduced.
Service disruptions are already affecting several trade routes. The Gemini Cooperation alliance between Maersk and Hapag-Lloyd has suspended some Middle East services, including routes connecting the region with Europe and Asia as well as certain regional shuttle services. To compensate for these changes, the alliance is introducing a new Asia–Europe loop designed to partially replace the halted east–west services.
Ocean carriers argue that the higher rates reflect rising operational costs. Port congestion across the Middle East has tied up roughly 2% of global container vessel capacity, while more than 200,000 TEUs of equipment remain stranded in the Persian Gulf. These disruptions have reduced available capacity and increased the cost of repositioning ships and containers.
Several carriers have already implemented surcharges tied to the situation. Maersk introduced a $200-per-TEU surcharge on shipments from Asia to Dar es Salaam, Tanzania. On other routes, including some originating in India, surcharges have reached as high as $2,400 per TEU.
Mediterranean Shipping Co. has also moved to raise rates. The carrier announced higher freight-all-kinds (FAK) rates for shipments from the Far East to Europe, the Mediterranean and North Africa. Beginning March 29th, MSC plans to set rates from Asia to Northern Europe at $2,820 per TEU, a significant increase from the $1,620 per TEU rate introduced in October for the same trade lane.
Meanwhile, geopolitical tensions are also affecting port operations. Maersk’s APM Terminals and MSC’s Terminal Investment Limited have temporarily taken over operations at Panama’s Balboa and Cristobal ports after Panama’s Supreme Court voided the 28-year concession previously held by Panama Ports Company, a subsidiary of Hong Kong–listed CK Hutchison Holdings. The decision has drawn criticism from China, which has warned of potential consequences following Panama’s move.
At the same time, India is taking steps to protect its domestic shipping interests. The country’s Directorate General of Shipping has warned container lines against engaging in predatory pricing practices that could harm Indian importers and exporters. Regulators emphasized the importance of transparency in freight charges so businesses can clearly understand their logistics costs before shipping.
The warning follows complaints from shipper organizations about war risk surcharges imposed on cargo moving through the region. These charges have reportedly ranged from about $2,000 per TEU and $3,000 per FEU for standard containers to as much as $4,000 for refrigerated cargo, with some surcharges applied retroactively.
According to Sunil Vaswani, executive director of the Container Shipping Lines Association (CSLA), carriers serving the India–Middle East trade introduced these fees to cover additional operating costs after the sudden closure of the Strait of Hormuz disrupted shipping routes.
Disputes over carrier surcharges and ancillary fees are not new in the container shipping industry. For decades, shippers and policymakers have criticized pricing practices, particularly in markets where foreign carriers dominate capacity. Previous efforts by Indian logistics regulators to introduce a more controlled pricing environment have met resistance, especially over issues such as terminal handling charges.
The latest regulatory warnings also echo earlier actions taken during the COVID-19 pandemic. In September 2020, when surging imports from Asia filled available vessel space and drove spot rates sharply higher, China’s Ministry of Transport urged carriers to increase capacity on trans-Pacific routes and avoid excessive rate hikes.
