The government is consulting exporters to address high inland freight costs and a container shortage caused by the West Asia crisis. Officials seek industry feedback to frame relief measures. "Exporters continue to bear the brunt of these landside logistics bottlenecks," a source said, as rising exports strain current shipping capacity.
Officials seek industry inputs on eligibility and rollout of support measures as West Asia crisis disrupts shipping and strains margins
The government is holding consultations with exporters to formulate support measures to address rising inland transportation costs and a shortage of shipping containers, as disruptions to maritime trade linked to the West Asia crisis add to the logistics challenges facing the export sector.
The Directorate General of Foreign Trade (DGFT) has sought detailed industry feedback to frame targeted relief measures, define eligibility criteria and work out an implementation mechanism, sources told businessline.
"In a recent meeting with exporters, the DGFT and its team sought inputs on the ground-level challenges faced by the industry due to high inland transportation charges and restricted container availability. Officials also sought specific recommendations on how to structure the proposed support measures and ensure their smooth implementation across major manufacturing and export hubs," a source said.
The shortage of containers has been exacerbated by the ongoing conflict in West Asia, which has disrupted shipping schedules and forced some vessels to take longer routes around the Cape of Good Hope to avoid the Red Sea and high risk routes. Longer voyage times have delayed the return of containers to Indian ports, while congestion at transhipment hubs and disruptions in vessel schedules have further affected their availability.
At the same time, rising merchandise exports are adding to the demand for shipping containers. India's goods exports grew 23 per cent year-on-year to $44.40 billion in September 2026, while cumulative merchandise exports during April-September rose 18.51 per cent to $259.89 billion. The growth has been driven by sectors including electronic goods, engineering products and petroleum products, adding to the requirement for container space and equipment to move export cargo.
"Exporters continue to bear the brunt of these landside logistics bottlenecks. Sharp freight hikes, coupled with erratic container availability and higher depot handling charges, have eroded profit margins and affected export competitiveness. Prolonged transit times and unexpected vessel blank sailings have further increased inventory holding costs at factory gates," another source said.