India’s coffee exporters are grappling with severe disruptions as around 300 containers—each carrying 20 tonnes—remain stranded at ports or move sluggishly through the Strait of Hormuz amid the ongoing West Asia crisis, triggering sharp cost escalations and logistical uncertainty.
According to Ramesh Rajah, President of the Coffee Exporters Association of India (AICEA), shipments bound for the region—particularly via Jebel Ali Port—have been delayed, rerouted, or offloaded at alternate “safe” ports far from their intended destinations. Many consignments have even been sent back to Indian ports such as Mundra Port, Nhava Sheva Port, New Mangalore Port, and Kochi Port.
Several containers have been declared “end of voyage” and offloaded mid-transit at ports including Khor Fakkan Port, Sohar Port, Salalah Port, and Jeddah Port—leaving exporters to trace, retrieve, and deliver consignments at their own risk and expense.
“Once offloaded, shipping lines take no responsibility. Exporters must locate containers, arrange trucking, and deliver cargo—often from distant ports—incurring $3,000–$4,000 in inland transport costs, alongside similar additional expenses in war risk surcharges and insurance,” Rajah said.
The crisis has pushed per-container delivery costs up by $5,000–$6,000, over and above the usual $800–$1,000 freight rates. Re-importing consignments into India has also become a costly and paperwork-heavy process.
Echoing the concern, Salman Baseer, Chairman of the Karnataka Planters Association (KPA), said the conflict has significantly disrupted shipping routes, inflated logistics and insurance costs, and dampened market sentiment. “Containers are stranded or delayed, causing inventory pile-ups, price volatility, and uncertainty for both producers and global buyers,” he noted.
Shipments intended to reach West Asian markets ahead of Ramadan have missed timelines, raising the risk of buyers rejecting consignments due to higher landing costs.
The exporters’ body has approached the Coffee Board of India and the Ministry of Commerce, but no formal response has yet been issued.
While existing contracts are likely to be honoured—albeit at significantly higher costs—fresh deals remain uncertain until freight rates, currently hovering around $4,000 per container, stabilise. Exports to the U.S. and Europe have become 50–60% costlier, with transit times extending by over 10 days. In contrast, shipments to Japan and Australia remain unaffected.
The disruption has also opened opportunities for competing coffee exporters from Africa and Latin America, including Brazil, Ethiopia, Uganda, and Costa Rica, to capture market share as India struggles to deliver on time.
