NEW DELHI: Escalating geopolitical tensions in West Asia have significantly disrupted maritime trade flows, resulting in a steep increase in freight charges for cargo shipments to the region. According to officials from the shipping ministry, freight rates for container cargo have surged almost ten times, while transportation costs for LPG and crude oil have more than doubled amid the ongoing conflict.
Government data indicate that average maritime freight rates for LPG cargo have climbed from around $94 per tonne prior to the conflict to nearly $207 per tonne as of May 15. Similarly, crude oil freight charges have risen sharply from approximately $14 per tonne to $28.6 per tonne during the same period.
The container shipping segment has witnessed the most dramatic escalation, with freight costs soaring to nearly $2,000 per twenty-foot equivalent unit (TEU), compared with about $203 per TEU before the outbreak of hostilities.
Officials attributed the sharp rise in shipping costs to growing uncertainty, operational disruptions, elevated insurance premiums, and heightened security risks across key maritime routes in the region. Addressing the media on recent developments in West Asia, shipping ministry Additional Secretary Shri Mukesh Mangal stated that the ministry is closely monitoring freight movements and has also issued an advisory to ensure transparency in shipping charges.
Sources further indicated that the conflict has substantially impacted vessel movement between India and West Asia. Average monthly shipping services operating from Indian ports to the region have reportedly declined from around 444 vessels to nearly 125 since the crisis intensified.
Industry data reveal that freight rates for LPG shipments have continued to climb steadily since the beginning of the conflict, while crude oil and container freight charges touched peak levels towards the end of April before witnessing marginal moderation by mid-May.
Officials emphasized that the situation remains highly fluid and freight trends will continue to depend on geopolitical developments in the region. “The situation remains dynamic and authorities are maintaining close surveillance on developments. Freight rates are expected to ease once stability returns to the region,” an official said.
