Despite the Government of India easing certain import procedures at domestic ports for the unloading of export shipments and extending export obligation periods for select items, exporters and shippers continue to grapple with a sharp surge in freight rates.
Industry stakeholders say both air and sea freight costs have escalated significantly in recent days, adding pressure to exporters already dealing with global supply chain uncertainties.
According to exporters and freight forwarders, air freight rates have witnessed the steepest increase, with charges rising by nearly 250–300 percent.
“Both importers and exporters are suffering due to higher freight rates. As airlines are taking longer routes, air freight rates charged by some airlines have increased by nearly 300 percent. Even for sea freight, the rate which was previously around ₹350–360 per kg for shipments to the US has now risen to ₹500–600 per kg,” said Vipin Vohra, Chairman of Continental Group and Managing Committee Member at PHDCCI.
Vohra noted that air freight rates to the US and Europe have doubled from Chennai and surged nearly four times from Delhi over the past two days following the suspension of operations by several Middle East carriers amid the Iran–Israel conflict. With Gulf carriers suspending or reducing services, freight rates from Chennai to Europe have also doubled.
Adding to the pressure, several shipping lines and ports have imposed War Risk Surcharges (WRS) due to security concerns and disruptions around the Strait of Hormuz. These surcharges range between $500 and $4,000 per container for cargo moving to and from the Upper Gulf, Arabian Gulf and Persian Gulf.
For example, Hapag-Lloyd has introduced a WRS of $1,500 per TEU for standard containers and $3,500 per container for reefers and special equipment. Similarly, CMA CGM Logistics has implemented an Emergency Conflict Surcharge (ECS) effective March 2, 2026, for cargo moving to certain Middle East and Red Sea destinations, with charges ranging between $2,000 and $4,000 depending on container type.
“We are seeing war-risk surcharges reaching around $2,000 for a 20-foot container and about $4,000 for a 40-foot container. In many cases, these surcharges are several times higher than the standard freight rates previously seen on India–Middle East routes,” said Krishnakumar Nair, Founder, Chairman and Managing Director of Kenshine Group.
Industry experts say the rerouting of vessels to avoid conflict zones is significantly driving up costs. In addition to higher surcharges, shippers are also facing delayed deliveries and increased working capital locked in transit.
According to Nair, the current situation highlights the urgent need for companies to develop more resilient supply chains that are less dependent on a few strategic maritime passages vulnerable to sudden geopolitical disruptions.
The ongoing developments underscore how geopolitical tensions in critical maritime corridors can quickly ripple through global logistics networks, affecting trade flows and increasing costs for businesses worldwide.
