Direct Port Delivery (DPD) Services for Faster Shipping

June 21, 2025

Direct Port Delivery (DPD) services offer a bypass strategy for importers. Recently, the Jawaharlal Nehru Port Authority (JNPA), the second largest container port in India, announced the reduction in shipment costs through some important measures. He said that they are creating a DPD warehouse at the port to store cargo for three to four days. They will charge a minimal fee to importers for the services provided. Also, the customs department pointed out that they will arrange direct customs clearance before the cargo arrives at the port.

Furthermore, 12 major ports across India witness a 4.45% cargo volume growth in FY24 due to improved infrastructure. The KDS or Kolkata Dock System has undergone several upgrades to streamline operations. They have improved upon their Port Access Control Systems (PACS) through RFID or Radio Frequency Identification to enhance security. They have also added the features of Direct Port Delivery, Direct Port Entry, and Port Community System to simplify business operations at the port.

As India aims to enhance logistics processes at its ports, Direct Port Delivery (DPD) is becoming an increasingly promising service. However, what does DPD entail, and how will it benefit importers on a larger scale?

Direct Port Delivery (DPD) Facility: What is it and what does it offer?

A direct port delivery (DPD) service is where importers can get their cargo delivered directly to their warehouses from the port. Typically, what happens is the cargo is stored at a CFS or Container Freight Station, where customs clearance takes place, the goods are inspected, paperwork is checked, etc. When it comes to DPD, this work is done directly at the port, while customs clearance may be done before the cargo reaches the port. After this, the goods owner can take the cargo containers directly from the port to their company facility or warehouse.

So, let’s look at how the DPD model surpasses the CFS way of operating:

Who can take Direct Port Delivery (DPD) services?

Not every importer may enjoy the benefits of DPD services. This facility is specific to:

● FCL consignments

● RMS-facilitated Bill of Entry on an “assessment but no examination” or “no assessment no examination” condition.

● Importers who can organise their own and off-load cargo directly from the terminal.

● Importers with a pre-deposit amount containing a sufficient balance to pay for the handling charges at the port.

● Importers who have completed the necessary formalities pertaining to customs clearance.

● Importers who are AEO certified (Authorised Economic Operator), even if they are a new importer.

However, Direct Port Delivery (DPD) is not permissible for importers:

● Who has a case of miss-declaration of the description of the goods transported, evasion of duty in the previous five years, or concealment of the goods imported.

● Who are faced with a legal case under the Customs Act, 1962.

● Who are subjected to 100% examination.

● Who are using Less-than Container Load shipments.

It is worthy of note that there is no limit to the number of containers allowed for DPD as long as the importer is eligible.

Benefits of Direct Port Delivery (DPD) for importers

Can importers benefit from Direct Port Delivery (DPD) apart from the optimised logistics time saved? Let’s find out the advantages of DPD:

● Going for a direct port delivery service helps importers save significantly on the cost of transport from port to CFS and then to their facility. It costs nearly Rs 9,500 to Rs 12,000 for a 20’ container when CFS is involved. It can go as high as Rs 14000 for a 40’ container.

On the other end, for a DPD model, the port charges Rs 2,500 for a 20’ container or Rs 4,500 for a 40’ container.

● The general clearance time for Direct Port Delivery takes two to three days. It takes five to seven days, and more for using CFS services.

● CFS services may charge a detention fee to the carrier due to delayed movement of goods from the terminal to CFS. However, these charges are not applicable in the case of DPD services.

● Authorities scan, examine, assess DPD containers on priority at the terminal.

Importers can apply for Direct Port Delivery depending on the requirements per terminal. The port issues a permission letter based on your application which allows the importer to visit the terminal for registration. Here, they will receive a unique DPD code, and then open an account to pay for the terminal handling charges. Provide the DPD code to the Customs House Agent. The agent will organise the rest of the activities during shipment.

The documents required include:

● A request letter

● PAN card

● Authorisation letter from the Customs agent for handling clearance

● AEO certificate (if applicable)

● GST certificate

● IEC certificate

Reach out to Allcargo Terminals that offers Direct Port Delivery (DPD), creating faster shipping for importers. This advantage can save time and reduce costs for the importers trying to optimise their operations. It can also help prevent further congestion and traffic at ports, which is a win-win on both sides.