India’s shipping and logistics sector faces unprecedented challenges due to escalating conflict in West Asia, particularly around the Strait of Hormuz. As ship movements through this critical route became increasingly risky, the country has swiftly shifted to alternative passages. Government data reveals that services operating east of Hormuz and through the Red Sea have surged from 127 in February 2026 to 257 in April, easing slightly to 245 in May.
The Ministry of Ports, Shipping and Waterways confirmed that the westbound routes have all but become obsolete for India’s trade with the Gulf. Historically reliant on Hormuz for energy imports and regional commerce, India is now forced to develop a new logistics framework rapidly. This shift has dramatically impacted its fertiliser supply chain, with stranded cargo on the Gulf’s western side now evacuated via a complex multimodal route through Saudi Arabia’s Yanbu Port.
These disruptions are also driving up domestic inflation, with rising fuel prices potentially impacting transportation and manufacturing costs. As India’s strategies in response to the Hormuz crisis attract global attention, the effectiveness of alternatives like the Yanbu route highlights both innovative solutions and emerging vulnerabilities that require urgent policy reassessment in New Delhi.
