Shipping Lines Suspend India–Middle East Cargo Bookings

Supply chains between India and the Middle East have largely stopped after major ocean carriers suspended services and cargo bookings due to the military conflict involving Iran, the US, and Israel.

The crisis has major economic implications for India, which is the second-largest trading partner of the United Arab Emirates. In 2022, India and the UAE signed a comprehensive trade agreement targeting $100 billion in non-oil trade by 2030.

Initially, booking suspensions focused on time-sensitive refrigerated (reefer) cargo. However, most major carriers have now halted all Middle East shipments until further notice.

Maersk announced it is suspending all new bookings between the Indian Subcontinent (India, Pakistan, Bangladesh, and Sri Lanka) and Upper Gulf markets including the UAE, Bahrain, Qatar, Iraq, Kuwait, and Saudi Arabia (Dammam and Jubail).

Other major carriers — Mediterranean Shipping Co., Hapag-Lloyd, and Ocean Network Express — have also stopped Middle East bookings. ONE said it is reviewing cargo already in transit on a voyage-by-voyage basis.

Carriers have also introduced significant war-risk or emergency surcharges, ranging from $1,500 to $3,000 per container. Maersk announced an emergency freight increase of $1,800 per TEU, $3,000 per FEU, and $3,800 for reefer containers.

As a result, export cargo is piling up at Indian ports. Containers bound for the Middle East continue arriving at docks despite the suspension of sailings, raising concerns about port congestion if the crisis continues.

The disruption is also affecting Indian exports beyond the Middle East. Seasonal grape shipments to Europe now face longer and less predictable transit times, as vessels divert around southern Africa instead of using the Red Sea and Suez Canal routes.

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