Longer shipping routes and emergency war surcharges are pushing up costs for India’s apparel exporters, with West Asia accounting for nearly 12% of the country’s garment shipments.
The ongoing West Asia conflict is significantly increasing logistics costs for Indian apparel exporters, with additional expenses estimated to add between Rs 12 and Rs 55 to the cost of each garment shipped, according to the Apparel Export Promotion Council (AEPC).
Shipping lines are imposing an Emergency War Surcharge (EWS) on cargo destined for Gulf countries, raising freight costs by approximately US $1,200 per 20-foot container. The per-garment impact varies by product: a shirt adds roughly Rs 12, trousers Rs 18, a women’s dress Rs 37, a two-piece suit Rs 43, and a winter coat up to Rs 55.
Several shipping lines have suspended vessel movements through the Strait of Hormuz and the Red Sea, forcing cargo to be rerouted around the Cape of Good Hope. The longer route adds nearly 6,500 kilometres to each voyage and delays deliveries by 10 to 15 days, while also increasing fuel and insurance costs. AEPC has warned that the disruption could lead to a decline in apparel export orders to West Asia in the coming months. West Asia accounts for approximately 11.8% of India’s ready-made apparel exports, valued at around US $1.9 billion in the previous financial year.
Source: Apparel Resources / Economic Times
