Despite the Government of India waiving certain import procedures at domestic ports for the unloading of export shipments and relaxing export obligation periods for several items, surging freight rates continue to be a major concern for exporters and shippers.
According to exporters and freight forwarders, both air and sea freight rates have risen sharply, with air freight charges increasing by nearly 250-300%.
“Both importers and exporters are suffering due to higher freight rates. As airlines are taking longer routes, air freight rates charged by some airlines have increased by nearly 300%. Even for sea freight, the rate which was previously around Rs 350–360 per kg for shipments to the US has now risen to Rs 500–600 per kg,” said Vipin Vohra, chairman of Continental Group and managing committee member at PHDCCI.
Vohra added that air freight rates to the US and Europe have doubled from Chennai and surged nearly four times from Delhi over the past two days following the suspension of operations by several Middle East carriers amid the Iran–Israel conflict. With Gulf carriers suspending or reducing services, freight rates from Chennai to Europe have doubled.
Meanwhile, several shipping companies and ports have imposed a War Risk Surcharge (WRS) ranging from $500 to $4,000 for cargo moving to and from the Upper Gulf, Arabian Gulf and Persian Gulf due to disruptions around the Strait of Hormuz.
For instance, Hapag-Lloyd has imposed a WRS of $1,500 per TEU (twenty-foot equivalent unit) for standard containers and $3,500 per container for reefers and special equipment. CMA CGM Logistics has introduced an Emergency Conflict Surcharge (ECS), effective March 2, 2026, for cargo moving to specified Middle East and Red Sea countries, with rates ranging from $2,000 to $4,000 depending on container type.
“We are seeing war-risk surcharges reaching around $2,000 for a 20-foot container and about $4,000 for a 40-foot container. In many cases, these surcharges are several times higher than the standard freight rates previously seen on India–Middle East routes,” said Krishnakumar Nair, founder, chairman and managing director of Kenshine Group.
According to him, rerouting of vessels is driving up costs through emergency war-risk and conflict surcharges, while shippers face delayed deliveries and significant working capital tied up in transit. The situation is forcing companies to build more resilient supply chains that rely less on a few strategic passages vulnerable to sudden geopolitical disruptions.