NEW DELHI : The Federation of Indian Export Organisations (FIEO) has urged the Government of India to take immediate measures to address the growing shipping and logistics challenges arising from the continuing crisis in West Asia, warning that escalating freight rates, reduced direct vessel connectivity and rising dependence on foreign transhipment hubs are adversely impacting the competitiveness of Indian exports.
In a letter addressed to Union Minister of Ports, Shipping and Waterways Shri Sarbananda Sonowal, FIEO has sought an urgent meeting with the Ministry to discuss both immediate relief measures and long-term strategies to strengthen India’s maritime logistics ecosystem.
FIEO Director General Dr. Ajay Sahai said exporters are facing mounting shipping-related challenges that require timely government intervention. He noted that the organisation intends to engage with the Ministry to identify practical solutions to the issues affecting India’s export trade.
The exporters’ body has highlighted that the ongoing geopolitical tensions in West Asia and the Red Sea region have significantly disrupted global shipping networks. As a result, several mainline shipping services have reduced direct calls at Indian ports, compelling a larger share of export cargo to move through overseas transhipment hubs such as Colombo, Singapore and Jebel Ali.
According to FIEO, the increased reliance on feeder services has resulted in longer transit times, additional cargo handling, higher logistics costs, irregular sailing schedules and container shortages, creating uncertainty for exporters and affecting supply chain efficiency.
Expressing concern over the continuing increase in ocean freight charges, FIEO pointed to the latest announcement by global shipping line CMA CGM, which has introduced a fresh Peak Season Surcharge (PSS) effective from 15 August on cargo originating from India, Pakistan, Sri Lanka, the Middle East Gulf and Red Sea ports destined for the US East Coast, Gulf Coast and inland destinations. The surcharge has been fixed at US$5,000 per container across major cargo categories.
FIEO stated that these developments come at a crucial time when India is pursuing an ambitious export growth agenda with the objective of achieving US$2 trillion in merchandise and services exports by 2032. The organisation emphasised that reliable, predictable and cost-effective maritime connectivity will be critical to achieving this national target.
To address the situation, FIEO has urged the Government to:
Rationalise freight rates and improve transparency in freight and contingency charges.
Facilitate the restoration of direct mother vessel calls at Indian ports.
Ensure adequate vessel availability and improve schedule reliability.
Develop contingency mechanisms to minimise the impact of future geopolitical disruptions on maritime trade.
Work closely with shipping lines and port authorities to strengthen India’s maritime resilience and reduce exporters’ logistics costs.
FIEO has stressed that timely policy intervention will help stabilise supply chains, contain rising logistics costs and safeguard the global competitiveness of Indian exporters in an increasingly uncertain international trade environment.
