Ludhiana exporters bear brunt as West Asia war disrupts shipments

Order cancellations, payment delays, and $2,000–$6,000 freight surge push Ludhiana units to seek govt intervention

Exporters in Ludhiana have sought immediate government intervention as the ongoing war in West Asia disrupts key trade routes, triggering order cancellations, payment delays, and a sharp spike in logistics costs, raising fears of a severe business downturn.

The concerns were raised during a meeting of the exporters’ wing of the Association of Trade and Industrial Undertakings in Ludhiana. (HT Photo)

The concerns were raised during a meeting of the exporters’ wing of the Association of Trade and Industrial Undertakings (ATIU) on Saturday, where industry members flagged the widening impact of the crisis across sectors, particularly engineering goods, hosiery and garments.

Exporters reported widespread cancellation of orders amid weakening global demand, alongside delays and suspension of payments from overseas buyers. A simultaneous rise in raw material prices within India has further strained production, making operations increasingly unviable. “The lack of remittances from customers and absence of support from financial institutions have made it extremely difficult for exporters to sustain and plan operations,” said Vijay Sharma, managing director, FAS International, and head of ATIU’s export unit.

He said shipments routed through the Strait of Hormuz — covering key destinations such as Dubai, Dammam, Riyadh, Qatar, Bahrain, Kuwait and Iraq — have been severely disrupted. Cargo is being diverted to smaller ports like Sohar, Fujairah and Khor Al Fakkan, resulting in heavy congestion and delays. In several instances, shipping lines have arbitrarily offloaded cargo at ports such as Chennai and Hong Kong, issuing “end of voyage” notices, leaving exporters stranded without logistical clarity.

Exporters also flagged steep and arbitrary charges imposed by shipping lines, ranging from $2,000 to $6,000 per container, further escalating financial stress. “Due to the restrictions imposed by shipping lines, we are left with no alternative but to bear these unjustified costs, as buyers are already looking for reasons to cancel orders,” said Rakesh Kapoor, managing director, Paramount Impex.

Madhur Gupta of Madhur Impex and Rajesh Gupta of National Yarns said the disruption had created a pre-Covid-like situation that could derail business momentum and erode buyer confidence, with potential long-term consequences for export relationships.Pranav Chadha, managing director, BAUM Tools, stressed the need for immediate relief measures to safeguard the sector, while Indermohan Singh, director, Turbo Tools, warned that prolonged disruption could force several units to shut down.ATIU president Pankaj Sharma said the association has written to the ministry of commerce, seeking urgent intervention in view of the prolonged uncertainty and severity of the crisis.