India shipping costs approach $100 billion amid West Asia conflict

Ongoing conflict in West Asia is driving India’s shipping costs toward $100 billion as maritime trade routes through the Red Sea, Gulf of Oman, and Strait of Hormuz face significant disruptions. The instability has forced vessel operators to reassess routes, leading to higher insurance premiums, longer voyages, and increased bunker consumption. This surge in logistics expenses impacts various sectors, including engineering goods, chemicals, textiles, petroleum, and agriculture.

In Odisha, the regional instability has specifically impacted the seafood industry. Marine product exports to the Middle East declined by 14.57% during 2025-26, resulting in an estimated loss of Rs 23.40 crore in export earnings. Despite this localized decline in the Middle Eastern market, Odisha’s total seafood export value rose by 16.36% compared to the previous financial year, suggesting that demand from other global destinations has helped offset the losses in the conflict-affected region.