New Delhi, March 9 With exporters facing a surge in sea freight of up to 300 percent due to the West Asia crisis, it has been decided to increase the number of small vessels operating between India and Gulf countries from April 15 to help clear consignments, FIEO director general Ajay Sahai said on Monday.
In a meeting with the DG (Shipping), exporters flagged the issues they are facing due to the crisis, triggered by the US and Israel joint attack on Iran, Sahai said.
About 400 exporters participated in the meeting, as the crisis is impacting the movement of containers.
"It has been decided to increase the number of Non-Vessel Operating Common Carriers (NVOCCs) from April 15 between India and the Middle East countries," the director general of the Federation of Indian Export Organisations (FIEO) said.
He said that the war has led to a significant jump in freight due to an additional contingency surcharge being imposed by foreign shippers.
"The surcharge ranges between USD 1,500 and USD 4,000. There is an increase of 300 percent in sea freight. Air fares too have increased. For example, between Kolkata and the Middle East, the charges have increased from Rs 190 per kg to 430 per kg," he added.
Sahai also said that they held a meeting with the RBI to address the bank-related problems of exporters.
Due to the war, exporters will not get their payments on time.
"If payment gets delayed, exporters face problems in getting interest subvention benefits, and banks impose penal interest. We have requested redressal of these issues as the RBI can give directions to banks," he said.
Exporters have sought an official advisory from the government recognising the disruption as a force majeure–type event, which they say would help prevent contractual penalties.
The war has led to an increase in ocean and air freight, the availability of containers and an increase in insurance premiums.
India's exports to the West Asian economies stood at USD 58.8 billion in 2024-25.