Indian Exporters Urge Shift From Bandar Abbas To Chabahar As Iran-Israel Conflict Threatens Regional Trade Routes: Report

Amid mounting concerns over the fallout of the Iran-Israel conflict, Indian exporters have called for an urgent shift of cargo operations from Iran’s Bandar Abbas port to the India-operated Chabahar port, reported PTI.

The suggestion, made during a high-level meeting convened by the Ministry of Commerce, reflects growing fears that escalating hostilities could disrupt India’s trade with Afghanistan, Central Asia, and Russia.

Commerce Secretary Sunil Barthwal chaired the meeting, which included officials from petroleum, shipping, revenue, financial services, as well as representatives of shipping lines and airport authorities.

“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,” an industry official present at the meeting was quoted by PTI as saying.

Although Bandar Abbas remains operational, exporters flagged the vulnerability of the Strait of Hormuz through which nearly 20 per cent of global oil trade flows as a major concern.

India, which relies on the strait for over 80 per cent of its energy imports, would be severely impacted if access is compromised.

The Federation of Indian Export Organisations (FIEO) confirmed plans to consult Chabahar authorities regarding logistics. Meanwhile, rising freight costs have added to the strain.

Ocean freight to Europe and the Mediterranean has surged by $1,000 per TEU, and air cargo rates have jumped by 15 per cent.

Exporters are deferring shipments due to fears of port gridlock and mounting demurrage.

With exports to Israel already dropping by over 50 per cent year-on-year and trade with Iran stagnating, stakeholders expressed concern over deteriorating economic links.

Barthwal assured that all alternatives, including Chabahar, will be actively assessed as the situation unfolds.

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