VISAKHAPATNAM: Seafood exporters are closely monitoring the evolving geopolitical tensions involving Iran, Israel and the United States of America, as uncertainty in global shipping routes and rising freight costs begin to pose potential challenges for the industry.
According to Seafood Exporters Association of India (SEAI) president Pavan Kumar, shipments from India to major markets such as the United States, Europe and Far East countries, including China and Japan are continuing without disruption for now. “Most of our exports are directed to the US, Europe and Far East markets. So far, our operations to these destinations have not been impacted,” he said.
Industry estimates suggest that since the conflict began, around 400 to 500 containers of seafood exports are either currently in transit or are awaiting shipment while remaining stored in warehouses.
Exporters are also keeping a close watch on the Suez Canal, a key maritime route connecting Asia and Europe. While the canal remains open at present, any potential disruption could significantly delay shipments.
“If the Suez Canal gets blocked, vessels will have to take the longer route around Africa, which will lead to delays and increased operational costs,” he explained.
Another concern for exporters is the sharp rise in fuel prices, triggered by the geopolitical tensions. Increasing crude oil prices have already begun to push up shipping costs, with several international shipping lines reportedly announcing freight rate hikes.
“Container shipping rates have increased by around $1,000 per container, and there are indications that another $1,000 may be added next week. This will directly impact exporters,” he said.
Andhra Pradesh alone accounts for nearly $2 billion in seafood exports annually, making the sector highly sensitive to fluctuations in logistics and freight costs.
Industry representatives say that higher freight charges could affect export orders, raise procurement costs for raw materials, and place additional pressure on exporters operating in competitive international markets. “For now, we are closely watching the situation as it unfolds. The increase in freight rates is beyond our control, and it is a matter of concern for the industry,” Pavan Kumar added.
Exporters say the coming weeks will be crucial in determining how geopolitical situation influences global trade routes and shipping costs.