The Federation of Indian Export Organisations (FIEO) has sought urgent intervention from the Ministry of Ports, Shipping and Waterways to address the mounting challenges faced by Indian exporters due to the ongoing crisis in West Asia, warning that rising freight rates, reduced direct vessel connectivity and increasing dependence on foreign transhipment hubs are eroding India’s export competitiveness.
In a letter addressed to Union Minister Sarbananda Sonowal, FIEO requested an urgent meeting with the Ministry to discuss both immediate and long-term measures to mitigate the impact of the disruption on India’s maritime trade.
FIEO Director General Ajay Sahai said exporters are witnessing a sharp escalation in shipping-related challenges, making government intervention critical.
Among the key demands raised by FIEO are greater transparency and rationalisation of freight and contingency charges, restoration of direct mother vessel calls at Indian ports, measures to ensure adequate vessel capacity and schedule reliability, and the establishment of contingency mechanisms to minimise disruptions during future geopolitical crises.
The concerns come amid continued freight increases by global container shipping lines. Most recently, CMA CGM announced a new Peak Season Surcharge (PSS), effective August 15, on cargo originating from India, Pakistan, Sri Lanka, the Middle East Gulf and Red Sea ports destined for the US East Coast, Gulf Coast and inland destinations. The surcharge has been fixed at $5,000 per container across major cargo categories.
FIEO noted that the prolonged security situation in West Asia has significantly disrupted global shipping networks, leading to fewer direct calls by mainline vessels at Indian ports. As a result, a growing volume of Indian export cargo is being routed through overseas transhipment hubs such as Port of Colombo, Port of Singapore and Jebel Ali Port.
The increased reliance on feeder services has extended transit times, raised cargo handling and logistics costs, and created uncertainty due to irregular sailing schedules and container shortages. Shipping lines have also been rerouting services and adjusting vessel capacity in response to persistent security risks in the Red Sea region.
FIEO emphasized that the developments are particularly concerning as India pursues its ambitious target of achieving $2 trillion in merchandise and services exports by 2032. The organisation stressed that reliable, predictable and cost-effective maritime connectivity is essential to achieving this objective.
The exporters’ body has urged the government to engage with shipping lines and port authorities to restore direct mainline connectivity, improve service reliability and strengthen India’s maritime resilience against future geopolitical disruptions. It said timely intervention would help contain logistics costs and protect the global competitiveness of Indian exports.
