Exporters seek government intervention as West Asia crisis disrupts shipping, drives up freight rates

The increased reliance on feeder services has increased transit time, cargo handling costs and overall logistics expenses

Escalating shipping disruptions triggered by the continuing crisis in West Asia have prompted Indian exporters to seek urgent government intervention, amid warnings that soaring freight rates, fewer direct calls by mother vessels at Indian ports and increasing dependence on foreign transhipment hubs are hurting India’s export competitiveness.In a letter last week to Union Ports, Shipping and Waterways Minister Sarbananda Sonowal, the Federation of Indian Export Organisations (FIEO) sought an urgent meeting with the Ministry to discuss immediate and long-term measures to address the disruptions. “We want to take up with the Shipping Ministry the escalation in shipping related problems being faced by exporters and look for some solutions,” FIEO DG Ajay Sahai told businessline.Key demandsKey demands include rationalisation and greater transparency in freight and contingency charges, restoration of more direct mother vessel calls at Indian ports, measures to ensure adequate vessel capacity and schedule reliability, and the creation of contingency mechanisms to minimise disruptions during future geopolitical crises. “The concerns have been reinforced by continued freight hikes by global shipping lines, the latest being French carrier CMA CGM’s announcement of a fresh Peak Season Surcharge (PSS) effective August 15 on cargo originating from India, Pakistan, Sri Lanka, the Middle East Gulf and Red Sea ports and bound for the US East Coast, Gulf Coast and inland destinations,” Sahai said.The surcharge has been fixed at $5,000 per container across major categories.West Asia crisisIn its letter, FIEO highlighted that the West Asia crisis had disrupted shipping networks, resulting in fewer direct calls by mainline vessels at Indian ports and forcing a larger share of export cargo to be routed through overseas transhipment hubs such as Colombo, Singapore and Jebel Ali. The increased reliance on feeder services has increased transit time, cargo handling costs and overall logistics expenses, while irregular sailing schedules and container shortages have added to uncertainty. The continuous rise in freight charges is taking place as shipping lines are rerouting services and adjusting capacity in response to security concerns in the Red Sea region.“These developments are particularly concerning at a time when India is pursuing an ambitious export growth strategy and has set its sights on achieving merchandise and services exports of $2 trillion by 2032. Reliable, predictable and cost-efficient maritime connectivity is indispensable for achieving this national objective,” the letter noted.Besides seeking greater transparency in freight-related charges, FIEO has urged the government to work with shipping lines and port authorities to restore direct mainline connectivity, improve schedule reliability and strengthen India’s maritime resilience against future geopolitical disruptions. It said timely intervention would help contain logistics costs and safeguard the competitiveness of Indian exports. Published on July 27, 2026