Shipping wars stitch higher costs into India’s apparel exports

The ongoing conflict in West Asia is increasing costs for India’s apparel exporters, adding between ₹12 and ₹55 per garment because of longer shipping routes and war-related surcharges, according to the Apparel Export Promotion Council (AEPC).

Quoting estimates cited in a report by The Times of India, AEPC said exporters are facing higher logistics expenses as shipping companies impose an Emergency War Surcharge (EWS) on cargo moving to Gulf markets.

“A potential decline of apparel export orders to West Asia may happen over the next few months. Due to war, apparel consumption may decline and brand confidence will be impacted, which will lead to a decline in apparel export orders,” AEPC said on Sunday.


Also Read: Tensions in West Asia leaves apparel exporters in troubled waters

The industry body said the surcharge has raised shipping costs by about $1,200 for a 20-foot container, increasing the cost of individual garments depending on the product category. For instance, in a single container the surcharge can add roughly ₹12 per shirt, ₹18 per trouser, ₹37 per ladies’ dress, ₹43 per two-piece suit and ₹55 for a winter coat, according to AEPC estimates.

Shipping disruptions have also added pressure on exporters. Several shipping lines have reduced vessel crossings through the Strait of Hormuz and the Red Sea, forcing cargo to be rerouted or rescheduled. Exporters say many consignments are now being diverted around the Cape of Good Hope, which adds nearly 6,500 km to the journey and delays deliveries by 10–15 days, pushing up fuel and insurance costs.

The disruption comes at a time when Indian textile exporters are already facing tight margins and seasonal delivery commitments. According to a report by The Economic Times, industry executives said the diversion of vessels around southern Africa could increase transit time by 20–25 days, raising freight costs and affecting the timely delivery of fashion merchandise.

Also Read: Trump says 'we're talking' to Iran but it's not 'ready' for deal to end war

West Asia remains a key market for India’s ready-made garments, accounting for nearly 11.8% of the country’s apparel exports. Data from the Directorate General of Commercial Intelligence and Statistics shows India exported garments worth about $1.9 billion to West Asian countries in the previous financial year.

The Gulf region, particularly members of the Gulf Cooperation Council, remains a key partner for India’s apparel trade, with exports to these markets estimated at about $1.8 billion in FY25.

(With inputs from TOI)