DGFT asks exporters for input on inland freight and container relief

India's DGFT is asking exporters how to shape relief from rising inland transport costs and scarce containers, with no inland freight support scheme notified yet.

By Procupy News DeskPublished 8 Nov 2026, 12:22 AM IST3 min readSource: BusinessLine

In 60 words

India's Directorate General of Foreign Trade has asked exporters to detail inland transport problems and recommend how relief should be structured, BusinessLine reported on 7 November. Rising trucking and depot charges plus scarce containers are squeezing exporters even as shipments grew 23% in September. An export support scheme called RELIEF runs to March 2027. No inland freight support has been notified.

Key points

DGFT asked exporters for ground-level problems and recommendations on eligibility and rollout of support measures¹.
India's goods exports rose 23% year on year to $44.40 billion in September 2026, adding to container demand¹.
RELIEF's Component II offers 95% risk cover on eligible ECGC policies, and the scheme runs to March 31, 2027².
60% of Asia-Europe capacity is back on the Suez Canal, but Drewry warns a fast return can cause vessel bunching³.

India's Directorate General of Foreign Trade has asked exporters to describe their inland transport problems and recommend how relief should be structured, BusinessLine reported on 7 November¹. Officials sought ground-level challenges caused by high inland transport charges and restricted container availability¹. They also asked how a package should define eligibility and reach major manufacturing and export hubs¹.

So far the public record shows only a review of an existing scheme. A DGFT trade notice created a sub-committee to examine uptake of RELIEF, not to grant new inland freight aid^4, 5.

Why the government is looking at landside costs

BusinessLine attributed the container squeeze to several factors. It cited the West Asia conflict, longer voyages around the Cape of Good Hope that delay the return of boxes, congestion at transhipment hubs and disrupted vessel schedules¹.

Export value is rising at the same time. Goods exports grew 23% year on year to $44.40 billion in September 2026¹. They rose 18.51% to $259.89 billion in April to September, against $219.30 billion a year earlier, according to Commerce Ministry data^1, 6.

Exporters told BusinessLine that sharp freight increases, erratic container supply and higher depot handling charges have cut margins¹. They said prolonged transit times and unexpected blank sailings, which are voyages carriers cancel, raised inventory holding costs at factory gates¹.

Existing relief covers risk, not trucking

RELIEF, the Resilience and Logistics Intervention for Export Facilitation, sits under the ₹25,060-crore Export Promotion Mission and was extended to March 31, 2027^4, 2. Its Component II gives 95% risk cover on eligible ECGC policies taken on or after March 16, 2026². It protects exporters against insurance premium increases on full container load, less than container load and reefer cargo, excluding energy shipments². Claims are filed through the ECGC portal².

A six-member sub-committee reviews claims processed, balances and low uptake across the scheme's three components^4, 5. It has three DGFT officials and one each from the commerce department, the department of financial services and ECGC⁴.

Money is tight elsewhere in the export budget. Extensions of RoDTEP and RoSCTL, which refund embedded duties and taxes, expire on December 31, BusinessLine reported on 18 October⁶. The Finance Ministry remains unconvinced about their effectiveness⁶. The Commerce Department has asked for a five-year extension and for RoDTEP's allocation to rise to ₹23,000 crore for 2026-27 from a budget estimate of ₹10,000 crore⁶.

Why boxes are short as Suez reopens

Drewry says 60% of Asia-Europe capacity is back on the Suez Canal³. It said 53 vessels transited the canal in both directions last week³. That shortens voyages and releases capacity. The Drewry World Container Index fell 1% to $4,389 per 40ft in the week to 5 November, though it is still 124% higher than a year earlier³.

Equipment does not rebalance at once. Drewry warns that a fast return to Suez could bring Suez and Cape-routed vessels into ports together³. That could cause bunching and cargo congestion at European gateways³. India also depends on overseas hubs: about 75% of its transhipment containers were handled at foreign ports as of May 2025⁷.

Landside dwell times are long. At the four ports covered by the 2025 National Time Release Study, export approval took about 30 hours on average⁷. But the gap between approval and vessel departure stretched to about 158 hours, or 84% of measured export time, a FICCI-Kearney report said⁷.

What exporters pay now

Availability is still patchy. Morbi tile maker Varmora Granito received 20 containers against the 150 to 200 it needs, its chairman and managing director Bhavesh Varmora told BusinessLine in late October⁸.

Inland transport is dearer too. Truck rentals on Delhi-Kolkata-Delhi rose 13% year on year in October, and Bengaluru-Mumbai-Bengaluru rose 12%, according to the Shriram Mobility Bulletin⁹.

JNPA handles around 50% of India's containerised cargo volume across the major ports¹⁰. BusinessLine did not report the size, form or timing of any package, and no eligibility rules have been published¹. Carriers are already pushing freight rate increases in mid-November ahead of next year's contract negotiations, Drewry said³.

What it means for procurement buyers

For buyers sourcing from India, the cost of moving a box from factory to port now sits alongside the ocean rate. Inland haulage, depot handling and equipment availability are adding to origin costs and stretching lead times, and exporters say margins are absorbing the difference¹. No inland freight support has been approved, so buyers should price today's level rather than assume relief.

Ocean rates remain high even as Suez capacity returns: Drewry's index is 124% above a year earlier³. With about 75% of India's transhipment boxes handled at foreign ports and long gaps between export approval and vessel departure, equipment can stay tight after headline rates fall⁷. Boxes remain scarce for some Europe cargo⁸.

Watch the policy calendar. RELIEF runs to March 31, 2027 and its committee is still working on uptake^4, 2. Any inland freight support would need its own eligibility rules, which are not published¹. Do not accept supplier quotes that assume a subsidy. Ask who pays inland haulage and depot charges under your Incoterms, request documents for pass-through charges, and quote origin charges separately from the ocean rate in 2027 tenders.

Build a buffer. JNPA handles around 50% of containerised cargo at India's major ports, so one gateway carries a large share of the risk¹⁰. Nominate a second port, test rail for long inland legs, and check whether your supplier can hold stock at the plant instead of at a congested depot¹.

Sources

1.BusinessLine, Govt consults exporters on relief for inland freight costs, container crunch, 7 November 2026. Accessed 8 November 2026.
2.BusinessLine, Govt extends RELIEF scheme for exporters till March 2027 amid West Asia crisis, 26 October 2026. Accessed 8 November 2026.
3.Drewry, World Container Index - 05 Nov. Accessed 8 November 2026.
4.The Economic Times, Commerce ministry sets up committee for better utilisation of RELIEF initiative for exporters, 31 October 2026. Accessed 8 November 2026.
5.BusinessLine, Comm min sets up committee for better utilisation of RELIEF initiative for exporters, 31 October 2026. Accessed 8 November 2026.
6.BusinessLine, Commerce, Finance Ministries hold talks over future of key export support schemes, 18 October 2026. Accessed 8 November 2026.
7.The Economic Times, Logistics links, shipping services emerge as key drivers for India's maritime growth: Report, 3 November 2026. Accessed 8 November 2026.
8.BusinessLine, Morbi exporters resume Gulf shipments, but FY27 exports may shrink by 40%, 29 October 2026. Accessed 8 November 2026.
9.BusinessLine, Festive demand keep truck rentals strong in October: Shriram Mobility Bulletin, 6 November 2026. Accessed 8 November 2026.
10.jnport.gov.in, JNPA. Accessed 8 November 2026.

How this story was made: the Procupy News Desk researched and wrote it with AI tools, working only from the sources listed above. Automated checks confirmed that every number and quote appears in those sources, and a separate AI fact-check compared the story with them before publication. Read our editorial policy. Spotted a mistake? Tell us and we will fix it.