DRI Puts Two Shipping Agents Under Scrutiny After MV Wan Hai 503 Fire Incident
Kochi | June 23, 2025 — The Directorate of Revenue Intelligence (DRI) has intensified its investigation into a mid-sea explosion and fire aboard the MV Wan Hai 503, a Singapore-flagged container ship, by placing two shipping agents operating out of Nhava Sheva port in Navi Mumbai under close surveillance. The vessel had suffered a fire in the Arabian Sea last week, reportedly following a powerful explosion that occurred while it was en route to India.
The MV Wan Hai 503 was carrying a total of 1,754 containers at the time of the incident. Of these, 157 were officially declared as containing hazardous materials by the International Maritime Dangerous Goods (IMDG) Code. However, DRI officials have raised red flags about the remaining 1,597 containers, which were marked as “general cargo” but are now being scrutinised due to vague or incomplete documentation regarding their contents.
Misdeclaration Suspected
Authorities suspect that some containers may have been misdeclared—either to evade customs scrutiny, bypass regulatory compliance, or avoid paying higher taxes and duties. According to sources familiar with the investigation, the two shipping agents identified by the DRI are believed to be linked to multiple consignments onboard the vessel. Though unconfirmed officially, reports suggest the agents may currently be in custody for questioning.
The DRI’s suspicions grew stronger after discrepancies were found in the cargo manifests submitted by the shipping agents. Officials noted that the level of vagueness in labelling, such as generic terms like “industrial parts,” “machinery items,” or “household goods”,—did not align with typical shipping practices for a major carrier like Wan Hai Lines.
Shipping Company Sounded Early Warnings
Wan Hai Lines, the operator of the vessel, had previously warned its global network of shipping agencies against the practice of misdeclaring or failing to declare dangerous goods. In an internal circular issued earlier this year, the company reiterated that violations of cargo declaration norms would attract steep penalties.
According to company policy, the fine for failing to declare hazardous cargo is $30,000 (approximately ₹26 lakh) per container. Meanwhile, falsely declaring non-hazardous cargo could attract a penalty of $20,000 (around ₹17 lakh) per unit.
“The safety of our vessels and crew is non-negotiable,” the company stated in a recent advisory. “False cargo declarations pose an unacceptable risk and will be met with strong financial and legal action.”
Chain Reaction Feared
Investigators are now probing whether any of the misdeclared or undeclared containers may have been responsible for the explosion that triggered the fire aboard the vessel. Preliminary assessments indicate that the blast likely originated from the forward cargo hold, though forensic analysis is still underway.
“We are working with forensic teams, shipping inspectors, and customs officials to determine the exact cause of the incident,” said a senior DRI official, who spoke on condition of anonymity. “There is strong circumstantial evidence that at least one container may have held undeclared hazardous material.”
Broader Implications for Indian Ports
The incident has sent ripples through India’s maritime sector, particularly at Nhava Sheva, which is one of the country’s busiest container ports. Port authorities have been asked to review recent export and import consignments linked to the agents under investigation, while Customs has been instructed to intensify inspections of suspicious cargo.
The Maritime Safety Authority of India (MSAI) is also expected to launch its own review of cargo safety protocols and has sought cooperation from the port management in Navi Mumbai to revisit clearance procedures for “general cargo” shipments.
Industry experts warn that such misdeclarations not only endanger the lives of crew and jeopardize ships worth hundreds of millions of dollars, but also risk contaminating marine ecosystems and disrupting critical global supply chains.
Call for Tighter Regulations
Following the MV Wan Hai 503 incident, maritime unions and logistics stakeholders have renewed calls for stricter enforcement of cargo declaration norms and harsher penalties for violators.
“Unfortunately, this is not an isolated incident,” said Capt. Arvind Rao is a veteran marine safety consultant. “Many agents take shortcuts, hoping to save money or speed up processing, but the cost of a fire at sea is immeasurable—both in human and financial terms.”
Capt. Rao added that the growing complexity of containerised trade, coupled with a rise in e-commerce and small-scale shipments, has made it easier for unscrupulous agents to slip in misdeclared cargo, often with devastating consequences.
Ongoing Investigation
As the investigation continues, MV Wan Hai 503 remains docked under restricted movement. Several containers have already been offloaded for examination, and DRI is coordinating with Singaporean maritime authorities, port officials in India, and private forensic consultants to reconstruct the events leading up to the explosion.
So far, no injuries to crew members have been reported, and emergency response protocols were promptly enacted to control the fire and prevent further damage. However, the incident has caused significant operational delays and has raised pressing questions about port surveillance and shipping compliance.
DRI sources indicate that more arrests or detentions may follow, depending on the findings of the cargo examinations. Meanwhile, shipping agents and freight forwarders across the country have been put on alert, with the warning that future violations will attract not only monetary fines but also criminal prosecution under India’s Customs and Maritime Security laws.
As the maritime industry awaits further details, the MV Wan Hai 503 case is shaping up to be a defining moment for cargo compliance in India’s shipping corridors.
