Europe is a key export market for Indian products such as textiles, auto components, leather goods and pharmaceuticals.
| Photo Credit:
LEON KUEGELER
Global container shipping line Maersk has raised its Emergency Contingency Surcharge (ECS) on cargo moving from the Indian Subcontinent to North Europe, effective August 1, in a move that is expected to increase logistics costs for Indian exporters.
For cargo originating from South and East India — including Chennai, Kattupalli, Thoothukudi and Visakhapatnam — the ECS for shipments to North Europe will increase to $3,800 per 20-foot container (TEU) from $2,800. For cargo from North West India, covering Mundra, Jawaharlal Nehru Port, Hazira and Pipavav, the surcharge will rise to $3,500 per TEU from $2,500.
The Danish major Maersk is one of the largest container shipping lines operating in India.
Key export market
Industry sources said the surcharge hike comes at a time when India has concluded its free trade agreement with the UK and is nearing the finalisation of a trade pact with the European Union. Europe is a key export market for Indian products such as textiles, auto components, leather goods and pharmaceuticals.
They said the higher surcharge would raise overall logistics costs and other shipping lines are also expected to revise similar contingency charges to offset the higher risks and operating costs associated with current trade disruptions.
To double freight costs
N Thirukkumaran, Chairman of Tiruppur-based Esstee Exports India Ltd, said the revised ECS would effectively double freight costs for shipments to North Europe. “After the ECS, the freight for a TEU to North Europe will increase to about $6,400. Before the West Asia crisis, freight was around $1,700, which doubled over the last three months and will now rise sharply again because of the ECS,” he said.
Sharmindar Saravanan, Managing Director of Chennai-based SSK Smart Move Logistics Pvt Ltd, said the increase would particularly hurt exporters operating on thin margins. “While large exporters may be able to absorb part of the increase, SMEs are likely to face greater pricing pressure in international markets,” he said.
Vivek Raja of Pearl Shipping, Thoothukudi, said the higher ECS reflected continued operational challenges faced by container carriers, including network disruptions, longer voyage times, port congestion and higher operating expenses arising from ongoing uncertainty in the Gulf region.
Although the ECS is only one component of total freight charges, it will increase overall shipping costs, particularly for low-margin commodities, he said. Exporters may have to absorb the additional expense or renegotiate prices with overseas buyers, he added.
Published on July 17, 2026
