New Delhi: Shipping lines are demanding contingency surcharges of up to USD 4,000 on 40-feet containers carrying perishables goods, and are refusing to release consignments even for the products that reached ports before the US-Israel launched attacks on Iran, exporters say.
The demand is creating difficulties for Indian exporters as they have to bear this extra cost.
"Before the war started on February 28, the ships had reached the Middle East region ports, but they are not doing the delivery and are seeking high surcharges. We have raised the issue with the commerce ministry," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
The government has set up an inter-ministerial group to assess the impact of ongoing geopolitical developments on India's exports, particularly supply chain disruptions.
These charges are imposed due to the escalating tensions in the West Asian region following the US-Israel attacks on Iran from February 28.
Sahai said that these charges can be imposed on goods which are yet to be loaded on ships from India.
"But they have put charges on all of them. This is creating a big problem. The delivery has not been done. Now the problem is, who will be able to absorb this cost?" he said.
Adding to the woes of domestic exporters, shipping lines have stopped taking consignments for West Asian countries.
"Sea freight has gone up by about 50 per cent. Gradually, we are also facing a container shortage because ships are stranding mid-water," Sharad Kumar Saraf, a Mumbai-based exporter and founder chairman of Technocraft Industries India, said.
He said that issues pertaining to shipping lines are increasing, and it will hurt the price competitiveness of domestic goods in the international markets.
Shipping lines taking the Cape of Good Hope route would lead to a delay in reaching export consignments, Saraf said.
Sahai also said that air freight has started increasing due to the conflict, and it would affect the competitiveness of Indian goods.
Certain airlines that are going from Calcutta to the Middle East have increased their charge from Rs 175 per kg to Rs 425 per kg.
"The impact of these disruptions on India's exports may be reflected in the March data," Sahai added.
India's exports to the West Asian economies stood at USD 58.8 billion in 2024-25.
The demand is creating difficulties for Indian exporters as they have to bear this extra cost.
"Before the war started on February 28, the ships had reached the Middle East region ports, but they are not doing the delivery and are seeking high surcharges. We have raised the issue with the commerce ministry," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
The government has set up an inter-ministerial group to assess the impact of ongoing geopolitical developments on India's exports, particularly supply chain disruptions.
These charges are imposed due to the escalating tensions in the West Asian region following the US-Israel attacks on Iran from February 28.
Sahai said that these charges can be imposed on goods which are yet to be loaded on ships from India.
"But they have put charges on all of them. This is creating a big problem. The delivery has not been done. Now the problem is, who will be able to absorb this cost?" he said.
Adding to the woes of domestic exporters, shipping lines have stopped taking consignments for West Asian countries.
"Sea freight has gone up by about 50 per cent. Gradually, we are also facing a container shortage because ships are stranding mid-water," Sharad Kumar Saraf, a Mumbai-based exporter and founder chairman of Technocraft Industries India, said.
He said that issues pertaining to shipping lines are increasing, and it will hurt the price competitiveness of domestic goods in the international markets.
Shipping lines taking the Cape of Good Hope route would lead to a delay in reaching export consignments, Saraf said.
Sahai also said that air freight has started increasing due to the conflict, and it would affect the competitiveness of Indian goods.
Certain airlines that are going from Calcutta to the Middle East have increased their charge from Rs 175 per kg to Rs 425 per kg.
"The impact of these disruptions on India's exports may be reflected in the March data," Sahai added.
India's exports to the West Asian economies stood at USD 58.8 billion in 2024-25.
