Morbi’s ceramic exporters are gradually resuming shipments to Gulf markets as shipping services through the Strait of Hormuz begin to recover. However, persistent container shortages, high freight costs and operational shutdowns continue to weigh on the industry, with ceramic exports projected to decline 40% to around ₹12,000 crore in FY27.
Varmora Granito Ltd, a prominent tile manufacturer in the Morbi ceramic cluster in Gujarat, dispatched 18–20 containers to the UAE and Iraq last week, marking a tentative recovery in shipments following disruptions to key shipping routes.
“Earlier, no containers were available. Now, in place of 200 containers, we have started getting 20,” Bhavesh Varmora, Chairman and Managing Director of Varmora Granito, said.
According to Varmora, some shipping lines have resumed services through the Strait of Hormuz as geopolitical tensions have eased, providing exporters with a limited opportunity to restart shipments and clear pending orders.
Container shortage continues to constrain exports
Despite the resumption of services, container availability remains significantly below industry requirements. Varmora Granito needs approximately 150–200 containers to meet its shipping requirements, but the availability of only around 20 containers highlights the scale of the continuing logistics challenge.
The shortage is restricting exporters’ ability to fulfil orders on schedule, while elevated freight rates are adding to the cost of shipments and putting further pressure on margins.
Nearly 40% of Morbi units remain shut
The crisis extends beyond shipping disruptions. Nearly 40% of units in Morbi, one of India’s largest ceramic manufacturing hubs, remain closed, reflecting the severity of the challenges confronting the sector.
Although the gradual restoration of shipping services offers some relief to exporters serving Gulf markets, a sustained recovery will depend on improved container availability, more affordable freight rates and the stabilisation of shipping operations through the Strait of Hormuz.
With exports expected to fall sharply in FY27, the pace at which logistics connectivity and manufacturing activity return to normal will be critical for Morbi’s ceramic industry.