Amid the ongoing geopolitical tensions due to the US-Iran conflict, Indian exporters continue to face a sharp rise in shipping costs due to war-led risk surcharge and supply disruptions. According to freight association body Federation of Freight Forwarders' Associations in India (FFFAI)'s letter dated March 16 to the Shipping Ministry, the industry has alleged that shipping lines are not fully implementing the government's push on transparent pricing and disclosures. The freight association also flagged that in many cases, the risk surcharge is as high as or higher than the freight in the current trade movements.
According to FFFAI's letter, the freighters flagged that waivers not being fully passed on by the ports and shipping lines. The industry said that there is no clarity on how the charges are calculated or applied, which is leading to disputes. Exporters believe that foreign shipping lines are exploiting the regulatory gaps, as the government has left the pricing to stakeholder's prudence.
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FFFAI seeks government intervention over war-led disruptions
The industry seeks urgent government intervention for clarity and uniform rules, said the FFFAI in its letter. Notably, the concerns raised by the freight association body comes after the government had already issued advisory urging shipping lines to refrain from opportunistic and predatory pricing on March 9, 2026. However, exporters are still reeling under disruptions in global logistics and shipping routes caused by ongoing tensions in the Middle East.
Amid the closure of the Strait of Hormuz, India is also witnessing a shortfall of LPG, with most commercial supply expected to be diverted to domestic households. Apart from the industrial and commerical shortage, this is likely to drive a shortage of commercial LPG supply to restaurants, impacting food delivery orders and the possibility of higher menu prices. Gas and global crude oil prices have been volatile in trade over the last two weeks. The Middle East region serves not only as a key destination for Indian exports but also as a critical transhipment hub for shipments bound for Europe and Africa.
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