Renewed tensions in West Asia are disrupting India’s overseas shipments with freight rates surging sharply.
Exporters are facing vessel shortages, port congestion and rising logistics costs.
Highlights
- West Asia conflict disrupts India’s export shipments.
- Freight rates jump due to vessel shortages and port congestion.
- Exporters face delays, cancelled bookings and higher logistics costs.
- Congestion reported at major ports including Nhava Sheva, Mundra and JNPT.
- China reportedly taking a large share of available shipping containers.
- Fertiliser shipments also delayed, raising concerns for kharif supplies.
The renewed escalation of conflict in West Asia has begun affecting India’s export-import trade, with shipping delays, vessel shortages and sharply rising freight rates creating fresh challenges for exporters.
According to industry executives, cargo movement has slowed due to congestion at key ports, delays in container evacuation and a shortage of available vessels. Exporters say shipping lines are imposing emergency and peak-season surcharges, significantly increasing logistics costs.
The impact is visible across several trade routes. Freight charges to destinations such as Bahrain, Russia, West Asia, Argentina and Africa have surged, with some routes witnessing rates more than double compared to last year. Exporters are also struggling to secure container space as shipping capacity remains tight.
Industry representatives said some vessels are skipping scheduled port calls, while congestion has increased at major Indian ports such as Nhava Sheva, Mundra and JNPT. Businesses are also reporting order cancellations due to the lack of shipping space.
Another concern is that China is reportedly absorbing a significant share of available containers, making it more difficult for Indian exporters to secure equipment for shipments.
The disruption has also affected fertiliser imports. Several fertiliser vessels are stuck at congested ports, raising concerns over timely availability of supplies during the ongoing kharif sowing season.
Exporters have urged the government to intervene and work with shipping companies to ease supply-chain bottlenecks, reduce logistics costs and ensure smoother movement of cargo amid the ongoing geopolitical tensions.
