Rising shipping costs worry meat exporters

NEW DELHI: India’s meat exporters are facing logistics disruptions and sharply rising freight costs due to the ongoing West Asia conflict, even as demand from the region remains largely stable, industry representatives said.

Secretary general of the All India Meat & Livestock Exporters Association (AIMLEA), RK Boyal, told TOI that exporters do not see any major drop in demand so far, but the biggest concern is the surge in shipping costs.

“Freight rates have gone up significantly, with marine container charges rising sharply in a very short span of time. Such sudden spikes are quite concerning for exporters and make planning shipments extremely difficult,” he said.

West Asia remains one of the largest markets for Indian meat exports, accounting for a major share of shipments emerging from the country.

Gulzeb Ahmed of HMA Group, a prominent exporter to West Asia, said the Feb to April period is usually the peak demand season, but shipments and new orders slowed due to the crisis. “West Asia is one of the biggest markets for food items from India, especially Feb to April, which is the highest demand period, but all existing shipments and new orders are on hold.”

He said containers are facing delays, and some shipments are being diverted to other ports as vessels struggle to reach their destination, adding that freight charges jumped three-four times overnight and war risk surcharges increased, with many importers unwilling to bear the additional costs.

An executive from the Allana Group, one of India’s largest meat exporters, said exporters are trying to continue supplies despite the rising costs. “Exporters are making every effort to honour commitments and maintain regular supplies to partners in the region,” the executive said, adding that the industry needs logistics costs to stabilise soon for trade to continue smoothly.

Small meat exporters told TOI that insurance coverage for shipments to parts of West Asia also became difficult to obtain, while several containers remain stuck at transit hubs, such as Jebel Ali, delaying payments and deliveries.


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