Exporters in India are grappling with a severe logistics crisis as the West Asia conflict drives ocean freight rates to multi-year highs, triggers port congestion at Nhava Sheva and Mundra, and causes acute container shortages, according to industry executives and trade bodies cited in a report by ET Retail.
Ocean Freight Rate Movements
Container shipping rates on key Indian trade lanes have skyrocketed since the conflict escalated on February 28, 2026. The steepest increases are on routes to conflict-afflicted West Asia, where rates have surged to around $3,500 from $400, according to Rajeev Chitalia, chairman of Electrofocus Electricals. Rates from India’s west coast to Argentina have more than doubled to $9,000 from $3,000-4,000 in the past three months, reported Khalid Khan, director at Geco Trading Corp. Africa-bound rates jumped to $7,500 from $3,500, he added.
A table of before-and-after spot rates shows the magnitude of the disruption:
| Trade Lane | Pre-Conflict Rate | Current Rate | Increase |
|---|---|---|---|
| India-West Coast to West Asia | $400 | $3,500 | 775% |
| India-West Coast to Argentina | $3,000-4,000 | $9,000 | 125-200% |
| India-West Coast to Africa | $3,500 | $7,500 | 114% |
| India to Bahrain | $550 | $5,600 | 918% |
| India to Trinidad & Tobago | $6,000 | $10,000 | 67% |
Additionally, foreign shipping lines are imposing emergency and peak season surcharges, along with detention and demurrage fees, which are inflating logistics costs and delaying shipments, exporters told the commerce and industry ministry.
Port Congestion and Container Shortage
Ports on India’s west coast — Nhava Sheva (JNPT) and Mundra — are heavily congested, with vessels unable to berth on time, reported Khushwant Jain, managing partner of Mumbai-based exporter GS Exports. Mother vessels are skipping JNPT entirely, and smaller vessels are infrequent, said Chitalia. The congestion is directly attributed to the West Asia crisis, which has disrupted Gulf shipping routes.
Container availability has become a critical issue. Khalid Khan noted that vessels are “giving blank calls” and not touching ports, making containers hard to find. China is “picking up more empty containers than before,” exacerbating the shortage. Jain revealed that his company is short 50 containers to fulfil export commitments. A shortage of food-grade containers is also hurting exporters of commodities.
The conflict has affected movement through the Strait of Hormuz, forcing India to use three ports in Oman — Duqm, Sohar, and Salalah — to continue shipments. However, containers in transit to Oman are stuck at transshipment ports due to the war, Jain said.
Shipper and Operator Implications
Exporters are seeing orders cancelled or delayed due to lack of vessel space and unaffordable rates. Chitalia noted that bookings for ports such as Bahrain and Sydney have been paused for more than a month. His company is saddled with ₹8 crore worth of inventory because of supply chain bottlenecks. Jain reported paying approximately ₹25 lakh in detention, compensatory, and demurrage charges after a client refused delivery due to delays.
Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), highlighted that while earlier challenges were about frequency of long-haul services, current concerns centre on elevated freight rates and additional charges that are eroding competitiveness.
“Vessels are giving blank calls and not touching ports, due to which we are not finding containers.” – Khalid Khan, director, Geco Trading Corp
“Nhava Sheva and Mundra ports are congested, and vessels are unable to berth on time, which is causing delays.” – Khushwant Jain, managing partner, GS Exports
Exporters have asked the government to urge Europe to give preference to Indian routes, noting that most shipping lines are based in Europe and both sides are negotiating a trade deal. They acknowledge the government cannot directly control sea freight rates.
Watch List
- Continued vessel blank calls and capacity tightening on India–West Asia lanes.
- Potential further rate spikes if the Strait of Hormuz disruption worsens.
- Outcome of India–EU trade negotiations, which could influence shipping lines’ allocation of vessels.
- Port congestion at Nhava Sheva and Mundra may persist as long as the conflict continues.
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