New Delhi — March 3, 2026
Rising tensions in West Asia following strikes on Iran and subsequent retaliation have made key Gulf shipping routes increasingly risky, disrupting India’s export-import trade.
Major shipping companies have imposed an additional $2,000 to $4,000 per container emergency conflict surcharge for cargo bound to Gulf and nearby destinations. The sudden escalation in freight costs has significantly impacted Indian exporters, with trade activity slowing sharply.
Officials at India’s Commerce Ministry are reviewing the situation on priority amid growing industry concerns.
Shipping Costs Surge From March 2
According to industry sources, the new surcharge came into effect on March 2. Shipping firms cited heightened operational risks along sensitive West Asian maritime corridors as the reason for the temporary fee.
The added charge has dramatically altered exporters’ cost calculations, making many consignments financially unviable under existing contracts.
Exporters Raise Alarm
Exporters say absorbing such steep additional costs is not feasible given current profit margins.
The surcharge applies to shipments between India and countries including:
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Iraq
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Bahrain
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Kuwait
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Yemen
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Qatar
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Oman
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United Arab Emirates
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Saudi Arabia
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Jordan
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Egypt (Ain Sokhna Port)
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Djibouti
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Sudan
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Eritrea
The same provisions apply to imports from these destinations into India.
Industry representatives report that several shipments have been put on hold as companies reassess pricing and risk exposure.
Port Congestion Adds Pressure
Beyond sea freight, air cargo routes for agricultural and allied products are also reportedly facing delays.
Another challenge is cargo already stationed at Indian ports. Containers scheduled for Gulf destinations are currently being withheld. Port operators may charge approximately $100 per container per day as ground rent, adding to exporters’ financial burden.
The combined effect of freight surcharges and port storage fees is creating a double cost impact for businesses.
Trade With Iran at Risk
Data from Delhi-based think tank Global Trade Research Initiative shows that in 2025, India exported approximately $1.24 billion worth of goods to Iran.
Key exports included:
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$747 million in rice
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$61 million in bananas
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$51 million in tea
Experts warn that prolonged disruption of maritime routes could significantly affect agricultural exports, which rely heavily on timely shipments.
Economic Implications
The Gulf region is strategically vital for India’s trade and energy security. Any sustained instability in maritime routes — particularly around critical chokepoints — could further inflate freight rates and commodity prices.
While the surcharge is currently described as temporary, exporters remain cautious about the long-term impact if tensions persist.
