Exporters are considering shifting freight operations from Bandar Abbas to Chabahar amid the escalating Iranian-Israeli conflict, which threatens trade routes to Afghanistan, Central Asia, and Russia. Air freight rates have surged by 15%, and both air and marine transportation costs are expected to rise further. This proposal arose during a recent Commerce Ministry meeting led by Minister Sunil Barthwal to evaluate the war’s impact on trade with India.
Though there are no immediate disruptions in Iran, potential upheaval is anticipated if conditions worsen. A shift to Chabahar could mitigate the impact on Iranian trade and that of neighboring regions. Officials assure that the feasibility of this relocation is under review, and discussions with Chabahar port authorities are imminent.
Concerns over the Strait of Hormuz could necessitate alternative routes through Fujairah and Oman. Ongoing conflict may jeopardize cargo movement in the Persian Gulf, affecting exports significantly, with many buyers postponing orders due to fears of delays. Current freight costs have surged, with a reported increase of $500-$600 per 20-foot container, prompting calls for enhanced connectivity from Chabahar to Uzbekistan to sustain trade.
Meanwhile, high-level officials from various sectors convened to address these challenges. The situation remains precarious as Iran and Israel exchange strikes, while regional diplomacy continues.
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