Exporters in dire straits as Hormuz may become chokepoint

China-Gulf spot rates climb 55% in a month as tensions mount

- DHRUVAKSH SAHA

Shippers and logistics firms in India, vital for the export-import (exim) activity, are apprehensive there will be no quick relief from the global shipping crisis in the Strait of Hormuz, which now is at the verge of closure. This follows the US bombing of three Iranian nuclear sites on Sunday and subsequent Iranian strikes on Israel.

"Freight rates have started rising, and the situation is volatile. With the US hitting critical Iranian nuclear sites, retaliation is expected, and tensions will stay high. This will affect oil prices and shipping charges. War risk premiums are already being added to shipments. Exporters have started feeling the heat in both air and sea freight," said Dushyant Mulani, chairman of the Federation of Freight Forwarders' Associations in India.

Iran's Supreme National Security Council will reportedly make a final decision on the strait after its parliament approved its closure on Sunday.