<p class="MsoNormal"><span style="font-size:14.0pt;line-height:115%;font-family:
"Times New Roman",serif">Importers and exporters across India are facing
heightened financial pressure as terminal operators and shipping lines
implement a new wave of <b>Terminal Handling Charge (THC) hikes</b>. These
increases are compounding the logistics burden on cargo owners already
struggling with volatile freight markets and persistent global trade
disruptions.<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">Impact on the Trade Ecosystem<o:p></o:p></span></b></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Widespread
Application</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: Higher THCs have been rolled out
across several major Indian ports, affecting both inbound and outbound
containerised cargo movement. <o:p></o:p></span></li>
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Operational
Strain</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: Transporters and fleet operators,
who already face thin margins of approximately <b>21.6%</b>, are finding
it increasingly difficult to absorb these added port-related costs. <o:p></o:p></span></li>
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Export
Competitiveness</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: Trade bodies have voiced urgent
concerns that continued escalations in THCs could diminish the global
competitiveness of Indian exports by driving up the final price for
international buyers. <o:p></o:p></span></li>
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Landed
Cost Increases</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: For importers, these charges
directly contribute to higher landed costs for essential goods,
potentially trickling down to domestic inflationary pressures. <o:p></o:p></span></li>
</ul>
<p class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">Compounding Cost Pressures<o:p></o:p></span></b></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Interdependent
Challenges</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: The THC hikes do not exist in a
vacuum; they are hitting the industry alongside elevated ocean freight
rates, congestion-related surcharges, and geopolitical disruptions in the <b>Middle
East</b>. <o:p></o:p></span></li>
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Diesel
and Transport Links</span></b><span style="font-size:14.0pt;line-height:
115%;font-family:"Times New Roman",serif">: Concurrent crises, such as
diesel supply crunches and subsequent <b>20% transportation rate hikes</b>
at corridors like Kandla-Mundra, are further squeezing supply chain
budgets. <o:p></o:p></span></li>
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Infrastructure
Surcharges</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: Specific ports, such as <b>Nhava
Sheva</b>, have also seen the implementation of additional mandatory toll
and incidental charges effective from January 2026. <o:p></o:p></span></li>
</ul>
<p class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">Industry Call to Action<o:p></o:p></span></b></p>
<ul style="margin-top:0cm" type="disc">
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Transparency
Demands</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: Cargo owners and industry
associations are urging regulatory authorities and port operators to
review existing pricing mechanisms to ensure greater transparency in how
terminal-related fees are calculated. <o:p></o:p></span></li>
<li class="MsoNormal"><b><span style="font-size:14.0pt;line-height:115%;font-family:"Times New Roman",serif">Financial
Stability</span></b><span style="font-size:14.0pt;line-height:115%;
font-family:"Times New Roman",serif">: Analysts warn that the combination
of these rising "local" costs and global shipping volatility is
placing an unprecedented financial strain on India's small and mid-sized
trade enterprises. <o:p></o:p></span></li>
</ul>