Gulf Shipping Chaos Disrupts India’s Trade Flows
News: India’s trade and shipping ecosystem is under severe strain as the West Asia conflict disrupts key maritime routes, especially the Strait of Hormuz, a critical energy lifeline.
Shipping lines are rerouting vessels, with diversions rising over 360%, leading to longer transit times and sharply higher costs. Freight rates, tanker charges and war-risk insurance premiums have surged, with some container costs doubling or tripling.
The disruption has already impacted 40,000–45,000 export containers worth up to $1.5 billion, squeezing margins for exporters in price-sensitive sectors.
India’s heavy reliance on Gulf energy imports heightens the risk. If tensions persist, structural shifts in shipping routes, higher logistics costs and supply chain volatility could significantly affect trade flows and economic stability.
Source: The Economic Times
