Skyrocketing Surcharges: Challenges for Indian Exporters Amid Geopolitical Tensions

Shipping lines have introduced contingency surcharges as high as USD 4,000 on 40-foot containers with perishables, creating a significant financial burden for Indian exporters. These charges apply even to goods that reached ports prior to the US-Israel strikes on Iran, exporters have claimed.

The Federation of Indian Export Organisations (FIEO) has raised concerns with the commerce ministry as domestic exporters grapple with the extra costs. Not only have shipping lines halted consignments to West Asian nations, but sea freight has surged by approximately 50%, compounded by a growing container shortage as ships remain stranded.

Additionally, air freight costs have climbed, further threatening the competitiveness of Indian exports. Some airlines operating from Calcutta to the Middle East have seen charges spike from Rs 175 per kg to Rs 425 per kg, adding to the complexities faced by the export sector.