Freight body flags rising shipping costs as war surcharges hit trade amid Israel-Iran tensions
- In Reports
- 04:04 PM, Mar 18, 2026
- Myind Staff
The Federation of Freight Forwarders’ Associations in India (FFFAI) has once again approached the government, raising concerns over the additional “war risk surcharges” being imposed by global shipping lines. These charges have been introduced due to the ongoing tensions between Israel and Iran, which have increased risks in key shipping routes. The industry body has urged authorities to step in and regulate these extra costs, as they are adding financial pressure on Indian exporters and importers.
In its communication, FFFAI highlighted that the sudden increase in freight charges is affecting trade competitiveness. The body pointed out that shipping lines are unilaterally imposing these surcharges without proper consultation. This is creating uncertainty for businesses that rely on predictable logistics costs. According to FFFAI, such unexpected expenses are especially difficult for small and medium enterprises, which operate on tight margins.
The association has also stressed that India’s trade sector is already dealing with multiple global challenges. These include supply chain disruptions and fluctuating demand. The added burden of war risk surcharges is making it harder for businesses to plan shipments and manage costs effectively. FFFAI has requested the government to examine the issue and ensure that shipping companies follow fair practices.
Officials from the freight body have maintained that the surcharges lack transparency and consistency. They believe that there should be clear guidelines on how and when such charges can be applied. The association has called for intervention to prevent any misuse of the situation by shipping lines.
The Israel-Iran conflict has heightened concerns about the safety of maritime routes, especially in sensitive regions. This has led shipping companies to increase charges to cover potential risks. However, Indian trade bodies argue that the burden should not be passed on entirely to customers without proper regulation.
FFFAI continues to seek government support to address the issue and protect the interests of the country’s trading community.

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