West Asia war: Ports may extend export relief till April-end as shipping delays

The extension will allow exporters to continue availing waivers on ground rent and dwell time charges, along with concessions on reefer plug-in fees and certain vessel-related charges for cargo stranded en route to West Asian markets.

The measures, first rolled out in early March, initially covered cargo impacted until 15 March and were later extended to 31 March. With the conflict persisting and containers continuing to face delays and rerouting, authorities are considering a further extension through April.

An extension would provide breathing room to exporters grappling with delayed shipments and working capital pressures due to longer transit times and supply chain disruptions, one of the people cited above said. Any further extension beyond April would depend on how the conflict in West Asia evolves and its impact on global shipping routes, this person added.

Queries emailed to the Ministry of Ports, Shipping and Waterways (MoPSW), Jawaharlal Nehru Port Authority (JNPA), Deendayal Port Authority, Chennai Port Authority and Cochin Port Authority on 12 April remained unanswered till press time.

The disruption stems from shipping bottlenecks in the Strait of Hormuz, a key transit route, forcing vessels to take longer routes and increasing transit time and costs. The conflict has also delayed export consignments, with containers getting stranded at ports.

According to a government statement issued on 10 April, nearly 90% of backlog cargo at major ports has been cleared following coordinated intervention by authorities. The extended concessions are expected to support the remaining cargo as well as any fresh consignments affected by ongoing disruptions.

Union minister for ports, shipping and waterways Sarbananda Sonowal said in a statement earlier this month that timely monitoring and swift action helped restore normalcy in port operations and ensured minimal disruption to trade. He also directed port authorities to ensure that financial relief measures are passed on directly to exporters without procedural delays and warned against profiteering.

Industry experts said the extension is necessary given the persistence of disruptions.

“These measures are required as the ongoing situation in the Gulf region is putting a strain on supply chains and transportation logistics,” said Kuljit Singh, partner and national infrastructure leader at EY India. “Due to the widespread nature of the trade disruptions, there is unlikely to be any major congestion at Indian ports as fresh shipments may reduce. Ports may see some revenue impact, but this can be recovered once normalcy returns.”

Bhavik Vora, partner at Grant Thornton Bharat, said the crisis has significantly altered shipping dynamics, with 20-25% of India’s merchandize trade moving through the Red Sea and Persian Gulf routes.

“Transit times have increased by 15-20 days on average as vessels reroute via the Cape of Good Hope, while freight rates on key corridors have surged by 40-60%,” Vora said. “This is compounded by higher insurance premiums and delays of up to 40-60 days in some cases, leading to cargo pile-ups and working capital lock-ins.”

He added that waivers on ground rent and concessions on vessel-related charges are essential to offset the cascading cost impact of extended dwell times, particularly for sectors dealing with perishable or time-sensitive cargo.

From an operational standpoint, the impact on ports is expected to remain contained as the measures are temporary and targeted, Vora said, adding that such interventions may help maintain throughput stability by preventing congestion.

According to the second person cited above, Jawaharlal Nehru Port Authority was saddled with 3,000 Twenty-foot Equivalent Unit (TEU) containers in March and an additional 5,000 TEU of trans-shipment cargo, all of which faced delays and rerouting due to the West Asia war. While the situation has improved as several stranded containers have moved out using back-to-town facilities, a large number remain at ports and would still require concessions, the person said.

Meanwhile, the Directorate General of Shipping (DGS) has issued fresh advisories to ensure transparency in shipping charges and smooth pass-through of concessions to exporters. It has directed ports and terminal operators to avoid procedural delays and ensure that benefits reach stakeholders directly rather than through reimbursement mechanisms.

The DGS has also flagged concerns over documentation of additional charges such as diversion fees and war risk premiums, asking shipping lines to clearly disclose and justify such costs.