In response to a sharp surge in freight rates, India will deploy smaller vessels on its shipping routes to West Asia starting April 15, according to the Federation of Indian Export Organisations (FIEO). The move comes as freight costs on key Gulf lanes have reportedly risen by nearly 300%, impacting exporters and importers alike.
FIEO said the introduction of smaller ships aims to ensure continuity of trade, reduce cargo delays, and manage rising logistics expenses. Exporters in sectors such as electronics, petroleum products, and engineering goods are expected to benefit from the additional capacity.
Analysts noted that while smaller ships may not fully offset rising freight costs, they provide a flexible solution to maintain supply chains amid heightened demand and market volatility.