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Time of India
15 hours ago
- Business
- Time of India
Iran-Israel war: Exporters push for urgent shift to Chabahar port as conflict threatens trade routes - Here's what you need to know
This is an AI-generated image, used for representational purposes only. Amid the escalating Iran-Israel conflict, Indian exporters have suggested shifting cargo operations from Iran's Bandar Abbas port to the India-managed Chabahar port , citing fears of a wider regional disruption that could severely impact trade with Afghanistan, Central Asia, and Russia. According to the news agency PTI, the recommendation was made during a high-level meeting convened by the commerce ministry on Friday to assess the fallout of the conflict on India's trade. Commerce secretary Sunil Barthwal chaired the meeting, which was attended by representatives from the petroleum, shipping, revenue, and financial services departments, as well as shipping lines and airport authorities. An industry official who attended the meeting was quoted by PTI as saying, 'If Bandar Abbas port doesn't function, it will affect exports not only to Iran but also to Afghanistan and Central Asia. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently.' While Iran's Bandar Abbas port remains operational, exporters flagged that further escalation of hostilities could block key maritime routes, particularly the Strait of Hormuz, a chokepoint that handles nearly a fifth of the global oil trade. The narrow 21-mile-wide waterway is vital to India, which relies on it for over 80 per cent of its energy imports. The Federation of Indian Export Organisations (FIEO) confirmed it would soon hold consultations with Chabahar port authorities. 'We will enquire about the facilities at the port,' a senior FIEO official said, noting that a final decision would rest with the shipping lines, while DG Shipping would also review the feasibility. Exporters also raised concerns over a sharp rise in freight charges. Air freight rates have already jumped 15 per cent, while ocean freight to Europe and Mediterranean ports has surged by $1,000 per TEU (twenty-foot equivalent unit). The cost of transporting a 20-foot container has also gone up by $500–600. Many buyers have paused orders, and exporters are delaying shipments, fearing that goods may get stranded at ports, leading to heavy demurrage charges. India's exports to Israel have already declined from $4.5 billion in FY24 to $2.1 billion in FY25, and imports have also dipped. Trade with Iran remains flat at $1.4 billion, but exporters worry the ongoing conflict could further damage these fragile trade ties. Basmati rice exports to Iran have reportedly halted, and shipping to the Middle East has become more expensive. If access to the Strait of Hormuz is impacted, India may have to consider alternate routes via Fujairah port in the UAE or ports in Oman. The commerce secretary acknowledged the concerns and assured stakeholders that the feasibility of moving consignments to Chabahar would be examined. He stressed the need to monitor freight and insurance rates closely and explore all possible alternatives as the situation evolves. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
a day ago
- Business
- Business Standard
Iran-Israel conflict: Exporters urge shift from Bandar Abbas to Chabahar
Exporters have suggested shifting cargo movement from Bandar Abbas port to the Chabahar port in the wake of Iran-Israel conflict, stating any further escalation in the war would severely impact trade with Afghanistan, Central Asia, and Russia, an industry official said on Friday. The official also said that the air freight rates have already seen a 15 per cent rise, and traders expect both air and sea freight costs to increase further if the conflict escalates. This was suggested during a meeting convened by the commerce ministry on assessing impact of the war on India's trade. It was chaired by Commerce Secretary Sunil Barthwal. The official also said that while there has been no immediate impact on shipments to Iran, disruptions are likely if the situation worsens. "If Bandar Abbas port doesn't function, it will affect exports not only to Iran but to Afghanistan and Central Asia also. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently," the exporter said. The official, who attended the meeting, said that the secretary assured that the feasibility of shifting operations to Chabahar port would be examined. A Federation of Indian Export Organisations (FIEO) official said that they would soon hold a meeting with Chabahar port authorities on the issue of shifting the movement of consignments. "We will enquire about the facilities at the port," the official said, adding, "The shifting call will have to be taken by the shipping lines. DG shipping would look into that." If Strait of Hormuz gets impacted due to the war, "we have to look at Fujairah port in UAE and Oman port", the official said. FIEO flagged that as of now, Iran's Bandar Abbas port is operational and being used for cargo movement to Afghanistan and other CIS (Commonwealth of Independent States) countries, including Russia. However, if the conflict continues beyond Monday, the route may be impacted. "In case ship movement in the Persian Gulf is blocked, exports to Gulf and Mediterranean countries will also suffer. Currently, buyers have put orders on hold, and exporters are delaying shipments due to concerns that goods may get stuck at ports, leading to heavy demurrage," another industry official said. Although certain factors remain beyond control, in the current circumstances, focus on Chabahar Port -- an Indian-managed port in Iran -- could help the industry. There is connectivity via Dubai and direct linkage from Kandla Port. Due to the conflict, Basmati rice exports to Iran have reportedly stopped, and shipments to the Middle East have become expensive. An exporter said there is a need to improve Chabahar's connectivity to Uzbekistan by engaging local players who may otherwise lose business if Bandar Abbas operations are affected. As per the exporting community, freight has risen by USD 500-600 per 20-feet container. Ocean freight from Indian ports to EU and Mediterranean ports has surged by USD 1,000 per TEU (twenty-foot equivalent unit). The meeting was attended by senior officials from the petroleum, commerce, shipping, and financial services, revenue departments, along with representatives from shipping lines, cargo handlers, and airport authorities. While the Red Sea route remains unaffected and 90 per cent of Indian cargo currently moves via the Cape of Good Hope, concerns were raised about potential disruptions at the Strait of Hormuz. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. Meanwhile, the exchange of strikes between Iran and Israel has entered the second week on Friday even as President Donald Trump weighed US military involvement and new diplomatic efforts appeared to be underway. At the same time, Iran's foreign minister is in Geneva for holding talks with his counterparts from France, Germany and the UK and the European Union's foreign policy chief. It is the first face-to-face meeting between Western and Iranian officials since the start of the conflict.
Time of India
a day ago
- Business
- Time of India
Exporters suggest shifting shipments from Bandar Abbas port to Chabahar amid Iran-Israel conflict
Exporters have suggested shifting cargo movement from Bandar Abbas port to the Chabahar port in the wake of Iran-Israel conflict , stating any further escalation in the war would severely impact trade with Afghanistan, Central Asia, and Russia, an industry official said on Friday. The official also said that the air freight rates have already seen a 15 per cent rise, and traders expect both air and sea freight costs to increase further if the conflict escalates. This was suggested during a meeting convened by the commerce ministry on assessing impact of the war on India's trade. It was chaired by Commerce Secretary Sunil Barthwal. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The official also said that while there has been no immediate impact on shipments to Iran, disruptions are likely if the situation worsens. "If Bandar Abbas port doesn't function, it will affect exports not only to Iran but to Afghanistan and Central Asia also. We have been informed that there is adequate capacity at Chabahar, and this needs to be explored urgently," the exporter said. Live Events The official, who attended the meeting, said that the secretary assured that the feasibility of shifting operations to Chabahar port would be examined. A Federation of Indian Export Organisations (FIEO) official said that they would soon hold a meeting with Chabahar port authorities on the issue of shifting the movement of consignments. "We will enquire about the facilities at the port," the official said, adding, "The shifting call will have to be taken by the shipping lines. DG shipping would look into that." If Strait of Hormuz gets impacted due to the war, "we have to look at Fujairah port in UAE and Oman port", the official said. FIEO flagged that as of now, Iran's Bandar Abbas port is operational and being used for cargo movement to Afghanistan and other CIS (Commonwealth of Independent States) countries, including Russia. However, if the conflict continues beyond Monday, the route may be impacted. "In case ship movement in the Persian Gulf is blocked, exports to Gulf and Mediterranean countries will also suffer. Currently, buyers have put orders on hold, and exporters are delaying shipments due to concerns that goods may get stuck at ports, leading to heavy demurrage," another industry official said. Although certain factors remain beyond control, in the current circumstances, focus on Chabahar Port -- an Indian-managed port in Iran -- could help the industry. There is connectivity via Dubai and direct linkage from Kandla Port. Due to the conflict, Basmati rice exports to Iran have reportedly stopped, and shipments to the Middle East have become expensive. An exporter said there is a need to improve Chabahar's connectivity to Uzbekistan by engaging local players who may otherwise lose business if Bandar Abbas operations are affected. As per the exporting community, freight has risen by USD 500-600 per 20-feet container. Ocean freight from Indian ports to EU and Mediterranean ports has surged by USD 1,000 per TEU (twenty-foot equivalent unit). The meeting was attended by senior officials from the petroleum, commerce, shipping, and financial services, revenue departments, along with representatives from shipping lines, cargo handlers, and airport authorities. While the Red Sea route remains unaffected and 90 per cent of Indian cargo currently moves via the Cape of Good Hope, concerns were raised about potential disruptions at the Strait of Hormuz. This narrow waterway, only 21 miles wide at its narrowest point, handles nearly a fifth of global oil trade and is indispensable to India, which depends on imports for over 80 per cent of its energy needs. Meanwhile, the exchange of strikes between Iran and Israel has entered the second week on Friday even as President Donald Trump weighed US military involvement and new diplomatic efforts appeared to be underway. At the same time, Iran's foreign minister is in Geneva for holding talks with his counterparts from France, Germany and the UK and the European Union's foreign policy chief. It is the first face-to-face meeting between Western and Iranian officials since the start of the conflict.
The Print
4 days ago
- Business
- The Print
India's exports dip 2.17 pc to USD 38.73 bn in May; trade gap shrinks to USD 21.88 bn
Cumulatively, during April-May 2025-26, exports increased by 3.11 per cent to USD 77.19 billion, while imports rose by 8 per cent to USD 125.52 billion, the data showed. According to government data released on Monday, imports declined 1.7 per cent year-on-year to USD 60.61 billion during the month under review due to fall in the inbound shipments of gold and crude oil. New Delhi, Jun 16 (PTI) After registering a positive growth for two months, India's exports slipped into negative territory again, contracting 2.17 per cent year-on-year to USD 38.73 billion in May due to a fall in petroleum goods' shipments, while trade deficit narrowed to USD 21.88 billion during the month. The trade deficit was USD 48.33 billion during the period. The dip in exports and imports narrowed the trade deficit, the difference between the value of imports and exports, in May. The gap was USD 22.51 billion in the same month last year and at USD 26.42 billion in April. The fall in merchandise shipments can be attributed to increasing global uncertainties. The Iran-Israel war could further dampen the prospects. The commerce ministry is holding an inter-ministerial meeting along with stakeholders this week to discuss what can emerge out of this conflict. The main export sectors which recorded negative growth during the month included rice, iron ore, gems and jewellery, engineering, and certain textile segment goods. Exports of petroleum products declined by 30.32 per cent to USD 5.6 billion in May. Similarly, crude oil and gold imports decreased by 26.14 per cent and 12.6 per cent to USD 14.75 billion and USD 2.5 billion, respectively. However, exports of tea, coffee, spices, ready-made garments of all textiles, chemicals, marine products, and pharma have registered positive growth. Electronic goods' shipments rose 54.1 per cent to USD 45.7 billion in May. Briefing the media on the data, Commerce Secretary Sunil Barthwal said that despite global uncertainties, India is doing good on the exports front. 'Despite the global policy uncertainty regarding trade, ongoing conflicts, we have done extremely well (during the April-May period),' he said, adding petroleum prices are volatile. During the last two months, crude oil prices have dipped and it has a 'dampening' impact on exports, he added. 'If you look at the global picture…we are doing much better than the global average,' Barthwal said, adding, like last year, the ministry would focus on 20 countries and six sectors. 'We have been in touch with our Missions. We are strengthening our Missions. Currently, all the commerce ministry posts in Missions have been filled up so that there can be a better thrust on trade,' he added. The secretary also said that the ministry is actively pursuing three free trade agreements (FTAs) with the UK (soon to be signed), the European Union and the US. Talks are on with New Zealand, Peru and Chile. Federation of Indian Export Organisations (FIEO) President S C Ralhan said that exporters are adapting well to a tough global environment. Mithileshwar Thakur, Secretary General at AEPC (Apparel Export Promotion Council), said that exports have been keeping the momentum and registering an impressive double-digit growth during this fiscal so far. The growth in exports to the US, the UK, Germany, Spain, Italy, Netherlands, coupled with impressive performance in countries like Australia, Japan, Korea, Mauritius, has kept the spirit high. 'The industry is upbeat about the news of early conclusion of FTA with the USA and the EU, which are our largest markets,' Thakur added. At the services front, the exports for May are estimated at USD 32.39 billion as compared to USD 29.61 billion in May 2024. Imports, on the other hand, rose to USD 17.14 billion as against USD 16.88 billion same month last year. PTI RR CS HVA This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
5 days ago
- Business
- Time of India
Goods exports shrink, trade deficit narrows
India's goods exports experienced a slight contraction of 2.3% in May, mirroring a 2.8% dip in imports, leading to a reduced trade deficit of $21.9 billion. The decline in exports was primarily driven by falling oil prices, impacting petroleum product shipments, while imports decreased due to lower gold and crude oil prices. NEW DELHI: India's goods exports and imports contracted by over 2% each in May, resulting in the trade deficit narrowing to $21.9 billion. Latest data released by the commerce department estimated that exports declined 2.3% to $38.7 billion as oil prices fell, resulting in lower shipments of petrol and diesel. Imports too fell 2.8% to $60.6 billion due to a decline in prices of gold and crude oil. The government, however, drew comfort from an increase in non-petroleum exports, which were up 5.1% at $33 billion. During the last two months, crude oil prices fell and had a "dampening" impact on exports, commerce secretary Sunil Barthwal said. "If you look at the global are doing much better than the global average. Despite the global policy uncertainty regarding trade, ongoing conflicts, we have done extremely well (during April-May)," he said. Exports of petroleum products are estimated to have declined 30% to $5.6 billion in May. Similarly, crude oil and gold imports fell 26.1% and 12.6% to $14.7 billion and $2.5 billion, respectively. Barthwal said that the commerce department is focusing on 20 countries and six sectors, which account for a bulk of the global imports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play Chess on Your PC, Free Play Classic Chess Install Now Undo Federation of Indian Export Organisations (FIEO) president S C Ralhan said that exporters are adapting well to a tough global environment. Mithileshwar Thakur, secretary general at AEPC (Apparel Export Promotion Council), said that exports have been keeping the momentum and registering an impressive double-digit growth during this fiscal so far. "Industry is upbeat about the news of early conclusion of FTA with the US and the EU, which are our largest markets," he said. On the services front, the exports for May were estimated at $32.4 billion compared with $29.6 billion in May 2024. Imports, on the other hand, rose to $17.1 billion as against $16.9 billion last year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
