Coimbatore and other parts of Tamil Nadu’s Kongu region are facing mounting export challenges as the continuing West Asia crisis disrupts maritime logistics, drives up freight rates and raw material costs, and creates uncertainty over delivery schedules. Industry representatives have warned that the disruption is increasing working capital requirements for manufacturers and raising the risk of order cancellations and declining export competitiveness.
The Indian Chamber of Commerce and Industry (ICCI), Coimbatore chapter, has urged the Federation of Indian Chambers of Commerce and Industry (FICCI) to take up the concerns with the Union government and seek urgent relief for exporters dependent on reliable shipping services.
ICCI Coimbatore chapter president C Dorairaj said the crisis had affected the availability and pricing of petroleum-linked raw materials, pushing up input costs and putting additional pressure on manufacturing operations.
Freight Rates Surge on Key Export Routes
The disruption has forced vessels to take longer routes, while congestion at alternative ports and transhipment hubs has further complicated cargo movements. Exporters are also facing higher marine insurance premiums, freight charges and conflict-related surcharges, alongside increasingly unpredictable transit times.
Industry representatives cited a sharp rise in shipping costs on key routes to the United States. Freight for a 40-foot reefer container from Tuticorin to New York, which previously cost around $5,500, has reportedly climbed to nearly $10,000. Similarly, freight from Visakhapatnam to the US West Coast, including Los Angeles, has increased from approximately $6,000 to $11,000.
K V Karthik of the Indian Pump Manufacturers Association said container shortages, freight rates that were three times higher and uncertain transit schedules were making it increasingly difficult for exporters to honour delivery commitments.
The challenges are particularly significant for manufacturing clusters across the Kongu region, where export-oriented businesses depend on predictable shipping schedules and competitive logistics costs to serve international markets.
Additional Charges Add to Exporters’ Financial Burden
Exporters have also raised concerns about unexpected charges levied by Non-Vessel-Operating Common Carriers (NVOCCs), shipping agents and consolidation agents over and above previously agreed freight rates.
Disputes over these charges can lead to delivery orders being withheld, leaving cargo stranded at destination ports. Exporters may consequently incur additional demurrage, container freight station rent, port storage expenses and reefer plug-in charges.
These costs add to the financial strain caused by higher freight rates, longer transit times and increased working capital requirements. Industry representatives have warned that prolonged disruption could undermine customer confidence, trigger order cancellations and defer new business, weakening the international competitiveness of regional manufacturers.
ICCI Seeks Urgent Government Intervention
To ease the pressure on exporters, ICCI has called for measures to improve container availability, rationalise freight rates and regulate additional charges imposed by logistics intermediaries.
Its key demands include establishing a pan-India grievance redressal mechanism, ensuring priority handling for reefer and perishable cargo, providing relief from disruption-related charges, extending repayment schedules for export loans and strengthening export support measures.
The chamber has urged FICCI to present these concerns to the Centre and press for timely intervention to protect export-oriented industries.
With shipping costs and delivery uncertainties continuing to challenge exporters, the industry is looking for coordinated action to stabilise maritime logistics, improve cargo movement and ease financing pressures. The effectiveness and timing of government measures will be critical in helping businesses across Coimbatore and the wider Kongu region sustain export orders and remain competitive in global markets.