Govt Calls Urgent Meet With Exporters As Middle East Tensions Disrupt Shipping

Industry estimates suggest freight costs could increase by 20-30% as security risks and viability concerns affect key shipping corridors.

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The government has called an urgent meeting with exporters and shipping industry representatives on Monday amid escalating tensions in the Middle East and their impact on trade flows.

The meeting, scheduled for around 2:30 p.m., will be chaired by Commerce Secretary Rajesh Agrawal and is expected to assess disruptions to logistics, freight movement and export consignments.

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Rising freight rates and route uncertainty are likely to dominate discussions. Industry estimates suggest freight costs could increase by 20–30% as security risks and viability concerns affect key shipping corridors.

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Exporters, particularly those dealing in perishable goods such as fruits and meat, are already facing losses due to shipment cancellations and delays.

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Global shipping lines have begun taking precautionary measures. CMA CGM has imposed an Emergency Conflict Surcharge (ECS) of up to $4,000 per reefer container, while Mediterranean Shipping Company (MSC) has suspended all bookings to the Middle East.

The Commerce Ministry is expected to review the extent of disruptions and explore possible mitigation measures to support exporters navigating heightened geopolitical risk and supply chain volatility.

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