Exporters are increasingly worried that shipping lines may begin dumping cargo at Indian ports as vessels return amid disruptions in the Persian Gulf, a move that could severely impact export supply chains and port operations.
The concern comes even as the government has taken steps to ease the logistical blockade in the region and support exporters affected by tensions around the Strait of Hormuz, one of the world’s most critical shipping routes.
Exporters are expected to raise the issue with the government on Monday after authorities simplified procedures to handle returning vessels. Industry representatives fear that a sudden inflow of return cargo could lead to congestion at major gateway ports such as Jawaharlal Nehru Port and Mundra Port, through which a large share of India’s trade with West Asia is routed.
“Government initiatives to facilitate returned export cargo in the current environment are timely. However, it will be important to ensure that this does not lead to congestion at key gateway ports,” said Ajay Sahai, Director General of the Federation of Indian Export Organisations.
Customs Issues Special Protocol
In response to the disruption, the Central Board of Indirect Taxes and Customs issued a circular on Sunday outlining protocols for field officers to handle cargo on vessels within Indian territorial waters or returning to Indian ports.
The order provides a 15-day relaxation window but directs officials to manually recover export incentives such as IGST refunds and duty drawback if they have already been disbursed. Transhipment of cargo will continue to be handled under existing regulations.
Meanwhile, the Directorate General of Foreign Trade has granted relief to exporters by extending export obligation deadlines under the Advance Authorisation and EPCG schemes. Authorisations expiring between March 1 and May 31, 2026 will now be valid until August 31, 2026 without payment of a composition fee.
Ports Asked to Lower Charges
The Ministry of Ports, Shipping and Waterways has also asked ports to reduce charges on stuck cargo to ease the financial burden on exporters.
Despite the disruptions, there are signs that cargo flows are gradually stabilising. However, major shipping lines such as Maersk and MSC Mediterranean Shipping Company remain cautious due to security concerns in the Gulf region.
Alternative Routes via UAE Ports
To keep trade moving, DP World has offered alternative routing for Persian Gulf-bound cargo as a temporary arrangement. Containers are being redirected to Khor Fakkan Port and Fujairah Port, from where they will be transported under bonded road transit to Jebel Ali Port for final customs clearance.
However, cargo movement remains limited. Exporters say only about 25–30% of normal volumes are currently moving, with congestion slowing operations at destination ports.
“Some shipping lines have resumed carrying containers but with freight rates up by nearly 300%. Since Jebel Ali is not accepting cargo directly, containers are being discharged at nearby ports wherever possible,” said Danish Shah of Sanghar Exports.
Despite the steep freight hikes, exporters say shipments are still viable as prices in Gulf markets have also surged due to supply shortages.
