The war in West Asia has created fresh uncertainty for the city’s exporters, who were hoping for a turnaround after several crises in recent years.
From the Covid pandemic to India’s political tension with China, and a 50% tariff imposed by the Trump administration, exporters have suffered losses from cancelled orders and discounted deals with importers. Now, the US-Israel and Iran conflict is posing new challenges.
Leather, fish and machinery consignments are stuck at sea and in airports, while importers are slowing fresh orders. Freight charges for ships and flights have also risen.
Goods stuck
A Calcutta airport official said airlines carry nearly 3,000 tonnes of cargo monthly to destinations including the UAE, Qatar, Kuwait, Bahrain, Saudi Arabia, Oman, Europe, the US and Canada.
“Of this, more than 50% is leather goods. Garments, automobile parts (mainly from Jamshedpur) and other machinery are sent by air. Perishable items like vegetables, fish and meat are also sent in large quantities,” said the official.
Cargo is mainly carried by Emirates and Qatar Airways.
Since the war broke out, shipments have been lying at the airport. “Qatar Airways has yet to resume operations, while Emirates has barely resumed,” the official said.
Freight charges for non-perishable items, usually ₹150-180 per kg out of Calcutta, have gone up to nearly ₹400 per kg due to reduced capacity and high demand. “Charges for perishable items, however, have not been increased after instructions from the UAE authorities,” the official added.
Leather, garments hit
Zia Nafis, director of Nafis Tanneries Industries, said a 1.5-tonne shipment of leather wallets for Germany has been stuck at the airport since February 27. “The consignment was booked on Qatar Airways, but the airline has not resumed operations,” he said.
Eastern India exports leather goods worth ₹5,000 crore annually, including wallets, belts, industrial gloves and finished leather, he said.
“New orders are not being placed as importers wait for the situation to improve,” said Nafis. He said an importer from France scheduled to visit Calcutta last week could not arrive due to flight disruptions.
Leather exports to Europe via the Red Sea and Suez Canal are also affected. An exporter said insurance premiums on vessels have increased.
Shipping companies have added $1,000-2,000 in emergency, contingency and peak season charges, said Vinit Kumar Khetan, managing director of Vinit Gloves Manufacturing.
Khetan exports industrial gloves and garments to Europe, the US and West Asia. “There is a 25% slowdown in new orders. Increased freight costs will be borne by exporters, as importers will seek discounts,” he said. Shipments of 15,000 industrial garments to Bahrain, sent every two months, are stalled.
Fish trouble
Fish exporters are facing similar problems. Rajarshi Banerji, of the Seafood Exporters’ Association of India, said: “The US tariff was reduced from 50% to 10%, providing some respite, but now we face a new crisis... Freight charges have risen, and all shipments to Gulf countries have been suspended since February 28. Most items are in cold storage.”
Large consignments of pomfret and other fish are sent to Kuwait and Bahrain.
Meat exporters said their consignments were stalled as well.