Indian horticulture exporters are seeking urgent government relief as shipping container costs to the US and Europe have surged 3 to 4 times. Geopolitical conflicts have caused vessel shortages and rerouting, creating significant risks for time-sensitive festive season shipments. The industry is meeting with the Agricultural and Processed Food Products Export Development Authority (APEDA) to discuss solutions for rising logistics expenses.
Indian exporters are grappling with a severe logistical crisis as a shortage of container vessels pushes freight rates to record highs. Transport costs to the US and Europe have jumped 3 to 4 times, with rates now climbing to nearly $9,000 per container compared to roughly $3,000 just a few months ago. This sharp increase is creating immediate financial pressure for companies in the horticulture and general export sectors.
The Horticulture Produce Exporters Association is set to meet with the Agricultural and Processed Food Products Export Development Authority (APEDA) and shipping representatives on Friday. The primary agenda is to seek government intervention to manage the rising costs and persistent delays. The shipping sector has been heavily impacted by geopolitical tensions in the Middle East, particularly near the Red Sea and the Strait of Hormuz. These conflicts have forced many shipping lines to reroute vessels around the Cape of Good Hope, which significantly increases transit time and fuel consumption.
This disruption is proving costly for horticulture firms because their products are perishable and time-sensitive. With the festive season approaching in Western markets, exporters are worried about meeting tight delivery schedules. The combination of higher freight rates and shipping delays threatens to reduce profit margins. If goods do not reach their destination on time, companies risk losing revenue due to spoilage or missed market windows.
While India's merchandise exports showed resilience with a 19.5% increase in July 2026, the logistics bottlenecks are becoming a major concern. The shipping industry is also dealing with blank sailings, where ships skip scheduled stops, further reducing the availability of cargo space. These issues are not limited to one sector; exporters across various industries are facing similar challenges in finding reliable shipping capacity.
The outcome of the meeting with APEDA will be critical. The next phase for the industry will depend on whether the government provides any subsidies, logistical support, or policy adjustments to help absorb these additional expenses. For now, the main monitorable for the sector is whether shipping routes stabilize or if freight costs continue to stay at these elevated levels through the upcoming peak festive shipping window.