The Federation of Indian Export Organisations (FIEO) has approached the Centre to help mitigate disruptions caused by the West Asia war, including port congestion and surcharges imposed by shipping lines, showed a 22 July letter accessed by Mint.
The request comes as ports, particularly in western India, are facing congestion, driving up costs for exporters. Shipping freight rates are expected to rise by as much as 50%, particularly on routes connecting India and West Asia.
The Drewry World Container Index (WCI), the benchmark for container rates, as on 23 July, was at $4,374 per 40-foot container, 3.8% lower than $4,547 on 16 July. The index is updated every week. However, it is still 130% higher than $1,899 on 26 February, prior to the start of the war.
Shipping traffic jam
With Iran-aligned Houthis enforcing a maritime blockade in the Red Sea and disrupting shipping lanes, more vessels are calling at Indian ports, leading to congestion and delays, said Unmesh Sharad Wagh, commissioner of customs and board member of Jawaharlal Nehru Port Authority (JNPA).
“There are not many options for them. One is Karachi port, and the other is Indian ports; they prefer to dock at Indian ports until the situation normalizes.” he said.
Indian ports are functioning as transhipment hubs for these vessels, he added. For example, a ship that sailed from Jebel Ali in the UAE to Indonesia is docked here on its way back to West Asia.
Congestion increases container unloading time from the typical 48 hours to 72 hours and may push inventory levels to about 1.5 times normal. "However, the situation is not unmanageable as of now and is being efficiently dealt with,” he added.
“While some Western ports may face congestion, the situation is largely normal at eastern ports,” said an official at Kakinada Seaports Ltd.
State-run JNPA and Adani Group-owned Mundra Port in western India together account for nearly two-thirds of the country's containerized maritime trade.
However, Adani Ports and Special Economic Zone Ltd, denied reports of congestion, saying operations across its ports, including Mundra Port, continue to run normally and at optimal efficiency.
"We continue to work closely with our customers and stakeholders to ensure seamless operations and minimize any potential impact on trade arising from the evolving situation in West Asia," an Adani Group spokesperson said in a response to Mint's emailed queries.
India has 12 major ports and more than 200 non-major (state) ports. Together, they handle over 16 million TEUs (twenty-foot equivalent units) of container traffic annually and facilitate approximately $1.6 trillion in maritime trade each year, according to the Directorate General of Shipping.
Port congestion can disproportionately hurt smaller businesses, which form a crucial part of India's export ecosystem, experts said. Micro, small and medium enterprises (MSMEs) account for nearly 49% of the country's exports.
"MSMEs mostly export lower value-to-weight ratio products and have to rely only on shipping services. Since port congestion leads to delays, working capital cycles will be impacted because of this,” said Veeramani C., professor and director, Centre for Development Studies, a Thiruvanthapuram-based economic policy think tank.
Government intervention
The FIEO, a lobby group of exporters, on 22 July, wrote to the Union ministry of ports, shipping and waterways, citing reports of reduced vessel movements through the Strait of Hormuz, increased security risks, diversion of ships, rising insurance premiums and growing congestion across several trade routes.
It said that these developments have compounded the logistics challenges already being faced by Indian exporters. "Diversion and transhipment of Indian cargo through intermediate ports is resulting in delays and additional costs."
The exporters' body has sought a meeting with the ministry to review shipping disruptions and their impact on Indian exporters, discuss the rationalisation of and greater transparency in freight and contingency charges, explore measures to ensure adequate vessel capacity and schedule reliability, and develop contingency mechanisms to minimise disruptions during future geopolitical crises.
“People will have to pre-plan their shipments and make some changes to the trade timelines because of congestion at ports. We are holding our exports in this case—a strategy usually followed by the ecosystem when the situation in West Asia and freight charges are both volatile,” said Pankaj Bansal, director of TMA International, an exporter of engineering goods and food products to West Asia and Europe.
Mint's queries emailed to the shipping ministry and Mediterranean Shipping Company on 23 July remained unanswered.
This also comes as shipping lines such as Ocean Network Express' (ONE) West India North America (WIN) Express service and Mediterranean Shipping Company's INDUS service—connecting the Indian subcontinent with West Asia and the US East Coast—continue to adjust services on routes through West Asia.
Ocean Network Express (ONE), for instance, will replace its West India North America (WIN) Express service with the new India North America Express (INE) service from August as part of a broader network optimization.
In the early months of the West Asia war, the Union ministry of ports, shipping and waterways advised ports to consider waivers and other forms of relief for stranded containers.
JNPA, the country's largest container port, announced on 10 March a 100% waiver of ground rent charges for up to 15 days, until 14 March, for containers lying inside its terminals from 28 February 2026 or those that had entered the port by the early hours of 8 March 2026.