Ongoing disruptions in global shipping routes are driving up logistics costs for India’s apparel exporters, adding pressure to an industry already grappling with volatile demand and rising input prices.
Exporters say freight rates and insurance premiums have increased significantly due to geopolitical tensions affecting major maritime corridors in West Asia and surrounding regions. The uncertainty has forced shipping lines to reroute vessels and extend transit times, pushing up overall transportation costs.
India’s apparel industry, one of the country’s largest export sectors, relies heavily on container shipping to deliver garments to major markets such as the United States and European Union. Delays and higher freight charges are affecting exporters’ margins and making it more difficult to compete with suppliers from other manufacturing hubs.
Industry representatives say some exporters are facing contract renegotiations as buyers push back against higher prices caused by logistics costs. Smaller manufacturers are particularly vulnerable, as they have limited capacity to absorb sudden increases in freight expenses.
Trade bodies have urged the government to consider temporary relief measures, including support for freight costs and faster export processing, to help the sector maintain competitiveness in global markets.
Despite the challenges, exporters remain hopeful that shipping conditions will stabilise in the coming months, allowing freight rates to moderate and helping the industry sustain its export momentum.