Exporters raise alarm as shipment costs jump up to 50% amid conflict

As the Israel-Iran conflict has already increased shipment costs by up to 50% and threatens to disrupt trade routes across West Asia, the government will talk to exporters to assess the impact and chart a response, three officials aware of the development told Mint.

- Dhirendra Kumar & Vijay C. Roy

The discussions will be aimed at safeguarding India's exports to the United Arab Emirates, Saudi Arabia, Qatar, Oman, Iran, Iraq, Kuwait and Israel, along with major European markets, the officials said on the condition of anonymity.

The conflict has escalated concerns over the safety of cargo passing through the Strait of Hormuz and the Red Sea, a critical maritime corridor for Indian exports. Shipping delays, rising freight charges and limited insurance coverage are being flagged by exporters and trade bodies, they said.

"As the situation has escalated only recently, we are monitoring developments and will engage with exporters and relevant industry groups to formulate a strategy that minimizes the disruption to trade," said one of the three officials.