More Pain for Cargo Owners From Rising THCs at Indian Ports

Why It Matters

Higher THCs erode profit margins for importers and exporters, tightening supply‑chain economics at a time when Indian trade growth is stagnant. The lack of standardized pricing intensifies cost volatility, prompting shippers to reassess routing and pricing strategies.

Key Takeaways

• DP World’s Mundra terminal raised THCs 15‑20% effective May 2026
• 20‑ft container THC now $163, 40‑ft dry $246, 40‑ft reefer ~$600
• Other Indian ports, including Nhava Sheva, expected to follow suit
• Carrier‑wide THC hikes add cost pressure amid flat export growth
• Lack of uniform THC regulation fuels uncertainty for shippers

Pulse Analysis

The recent surge in terminal handling charges (THCs) at India’s busiest ports reflects a broader trend of cost inflation in global logistics. While carriers cite rising operational expenses and the need to offset Middle‑East trade diversions, the timing coincides with a plateau in export values, which hovered around $442 billion in FY 2025‑26. Shippers now face a double‑edged sword: higher port fees on top of existing surcharges for fuel, security, and congestion. This environment pushes forward‑looking importers to scrutinize total landed cost models and explore alternative gateways or multimodal options to preserve margins.

For container lines, the ability to pass THC increases onto customers can bolster short‑term earnings, yet it risks alienating price‑sensitive cargo owners. As THCs become a more visible line‑item on invoices, forwarders are likely to negotiate bulk discounts or seek volume‑based rebates, potentially reshaping carrier‑shipper dynamics. Moreover, the disparate fee structures across terminals within the same port undermine predictability, prompting some firms to consolidate volumes at terminals with more transparent pricing or to leverage digital platforms that aggregate real‑time charge data.

Policy makers and trade bodies such as the Federation of Indian Export Organisations (FIEO) have called for greater regulatory oversight, but carrier resistance remains strong. Without a coordinated framework, THC volatility could dampen India’s export competitiveness, especially as global buyers compare landed costs across sourcing hubs. Aligning port fees with broader trade‑facilitation initiatives—like digitized customs and streamlined yard operations—could mitigate the impact, ensuring that rising handling charges do not become a barrier to the country’s ambition of expanding its share in global trade.