Iran-Israel War: Trade Crisis Due to Iran-Israel War Tensions; Thousands of containers were stranded at Indian ports

Iran-Israel War: Escalating war and geopolitical tensions in the Middle East have deeply affected global trade routes, particularly supply chains passing through the Strait of Hormuz and the Persian Gulf. The impact is now being directly felt at ports on India’s west coast, such as JNPT (Navi Mumbai) and Mundra Port (Gujarat), where logistics bottlenecks have reached critical levels.

Uncertainty surrounding the war caused major shipping companies to suspend bookings and divert ships to long-haul routes such as the Cape of Good Hope. As a result, thousands of containers with high-value agricultural and industrial products are stuck at Indian ports.

The most affected sectors are agricultural products. Current exports are estimated to be stuck as follows:

Basmati Rice: 400,000 tonnes (200,000 tonnes at Indian ports, 200,000 tonnes in transit)
Fresh grapes: 5,000-6,000 tonnes (300+ containers)
Onions: 5,400 tonnes (150-200 containers, mainly from Nashik)
Bananas and Pomegranates: Hundreds of tonnes (in 1,000+ reefer units)
Frozen Buffalo Meat: Bulk (300+ Perishable Containers)
Total containers bound for the Middle East: 23,000 units stuck at various western ports

This stranded cargo has created a ‘reverse-flow crisis’ in wholesale markets like Vashi APMC. The lack of exports has led to excess stocks coming into the market, which has pushed down prices. For example, bananas have come down from ₹25/kg to ₹15/kg.

Impact on imports and industries

Along with exports, imports have also been severely affected.

Sulfur and Gypsum: 300,000 tonnes shipment delayed
Dry fruits and dates: 600-700 containers stuck at hubs like Bandar Abbas
LPG: 5 large carrier vessels diverted or pushed forward
Energy Security: 85% of India’s LPG and 55% of LNG imports depend on the Strait of Hormuz.

The disruption is expected to increase domestic gas prices and industrial costs.

Financial and logistical pressures

With more than 5,000 containers grounded at JNPT, the storage and power charges average 8,500 per container per day. Excess stock reaching the wholesale market is hurting farmers and traders. The war in the Middle East is having a profound impact on India’s supply chain. If the Israel-Iran conflict continues, the impact on agricultural exports, industrial production, energy security and domestic prices will be wide-ranging and long-lasting.