Indian exporters – now relieved to see some moderation in sky-high freight rate levels amid slowing volumes – have a new cost burden to deal with: a government tax levy.
The setback follows the end of previously-granted federal exemptions from the applicability of Goods and Service Tax (GST) on export freight.
GST, a unified national tax system, was introduced in 2017, intended to make a one-market environment.
As a result, from 1 October, exporters must meet a tax slab of 5% on ocean freight and 18% on air freight charges.
“GST on export freight rates will put further pressure on the already-tight liquidity position of the exporting community,” a Mumbai-based shipper told Container News.
“In the current situation, the focus should be on providing liquidity at a competitive cost to the export sector,” said A. Sakthivel, president of the Federation of Indian Export Organisations (FIEO), in a statement.
Sakthivel added, “The government should look into the request of the export sector for continuing with IGST [Integrated Goods and Services Tax) exemption on freight for exports, which lapsed on 30 September, particularly as the freight rates are still at much elevated levels and GST on such freight will affect the liquidity of the exporters, though refundable later.”
Major shipping lines operating to/from India have already issued customer advisories that they would apply GST on international outbound freight charges from 1 October.
“Subsequent to expiry of the validity of the said notification and with no further extension, every export transaction would be taxable under GST,” Maersk Line said in a trade notice.
Reflecting weakening demand trends, Indian merchandise exports in September slipped 3.5% year-over-year, according to the latest government data.
“The slowdown in exports is a reflection of the toughening conditions of the global trade facing demand slowdown on account of high inventories, rising inflation, economies entering recession, high volatility in currencies and geopolitical tensions,” FIEO added.
Sanjay Bhatia, CEO and co-founder of digital forwarder Freightwalla, has also noted that Indian export growth is facing challenges.
“Global trade is on the verge of noticing a slowdown,” Bhatia said. “The US and Europe caught a rise in inflation that has hit the consumption, leading to lower offtake of goods. Plummeting freight demands hint towards low export, implicating a decrease in the long-term contract rates.”
He went on to explain, “We noticed demand was not as high as expected in the first quarter regarding growth, and the same was seen for the most part in the second quarter.”
Jenny Daniel
Global Correspondent
As global supply chains navigate ongoing shifts, expanding a robust international partner network is a vital strategy for ensuring seamless cargo flows. From April 1st to 4th, 2026, Glotrans Vietnam is officially taking part in the 21st JCtrans Global Freight Forwarders Conference, held at the Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand.
The 15th WCA Worldwide Conference 2026, organized from 9 to 13 March in Singapore, successfully brought together freight forwarding and logistics companies from across the globe. Hosted in one of Asia’s leading logistics hubs, the conference attracted thousands of freight forwarders, logistics enterprises, and supply chain professionals from many countries worldwide.
Air cargo is heating up again in a very concrete way: speed is no longer just a company advantage—it is increasingly a national advantage. IATA recorded strong global air cargo growth and a record year in 2024, and in 2025 several months continued to set new highs in demand measured by CTK, suggesting this is not a short-lived surge.
After several productive days at the 21st JCtrans Global Freight Forwarders Conference held in Bangkok, Glotrans Vietnam has successfully concluded its participation, achieving valuable connections and promising cooperation opportunities.
Attending the Thanh Hoa Investment Promotion Conference 2026 for the first time, Glotrans’ representatives not only sought networking opportunities but also gained deeper insights into how Thanh Hoa is gradually repositioning its role within the regional supply chain landscape.
On the morning of March 25, 2026, Glotrans Vietnam – Hai Phong Branch organized a talkshow at the Faculty of Economics, Vietnam Maritime University under the theme “Glotrans & Career Compass.”
The shipment of food additives was transported in container No. FCIU3301688 (20’), under B/L MPRSMUM1806, on the voyage from Nhavasheva Port (India) to Dinh Vu Port (Hai Phong, Vietnam) on 29/04/2017.
Company T (Plaintiff – the Insured) entered into an insurance contract with Company B (Defendant – the Insurer). After the insured event occurred, the Insurer alleged that the Insured had violated its obligation to prevent and mitigate losses. The Arbitral Tribunal acknowledged that such an obligation exists but concluded that the Insured did not breach it.
Under the insurance contract, the premium was to be paid in three installments, and in all three, the insured party was late in payment. When a dispute arose, the insurer (Defendant) argued that the insurance contract had terminated before the insured event occurred due to the late premium payment and therefore refused to make an insurance payout. However, the Arbitral Tribunal held a contrary view.
