Freight surge, LPG shortage amid West Asia crisis hit eastern India's exports

The ongoing West Asia crisis has sharply disrupted exports from eastern India, driving freight rates higher, squeezing production, and leaving hundreds of containers stranded at Kolkata port, industry representatives said on Thursday.

Freight costs for shipments to Europe and the US have risen 60–80 per cent, largely due to rerouting via the longer African route and additional war-related surcharges imposed by shipping lines. The base freight increase alone is estimated at over 40 per cent, according to the Calcutta Customs House Agents Association (CCHAA). Export volumes have dropped by as much as 50 per cent for some exporters, while container shortages and a lack of clarity on freight rates have further stalled fresh shipm ..

Around 600 containers that had reached Kolkata port for loading have been returned following last-minute cargo cancellations, with nearly 400 already moved back and the rest in the process. Exporters said shipping lines are not accepting new containers and are withholding freight details, forcing firms into a wait-and-watch mode.

The disruption has been compounded by an LPG shortage, which is affecting production in sectors such as engineering goods where the fuel is used in finishing processes. Industry executives described the situation as “dire,” warning that what is typically the busiest export month could turn into the weakest.

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