Maritime News India: The Iran-US conflict has severely disrupted maritime shipping through the Strait of Hormuz, a critical waterway accounting for 40-50% of India’s crude oil imports and nearly half of its liquefied natural gas imports. This disruption directly explains the vessel bunching crisis at JNPA and Mundra ports we discussed earlier, with container dwell times hitting 7 days and 25% vessel bunching. [BBC | NDTV | linkedin]
Major shipping giants suspended operations through the strategically vital Strait of Hormuz following US and Israeli strikes on Iran, with only 154 vessels crossing the strait in March versus normal traffic levels. [CNBC | CNN]
Immediate CHA Impact: Monitor rerouting alternatives, advise clients on extended timelines, prepare for increased freight costs, and track insurance availability for Middle East shipments.
Key Statistics: Strait of Hormuz Disruption Impact on India
| Metric | Pre-War Normal | Current Status | Impact Level |
| Crude Oil Through Hormuz | 40-50% of India’s imports | Severely restricted | Critical |
| LNG Imports Through Hormuz | Nearly 50% | Severely restricted | Critical |
| Tanker Movement Decline | Normal levels | Plummeted 90% [NBC News] | Critical |
| Vessels Crossing (March) | 1,000+ (normal) | 154 vessels CNN | Critical |
| Shipping Services East of Hormuz | 127 (Feb) | 257 (April) → 245 (May) [Times of India] | Major |
| Rerouting Time | Normal | Several weeks delay [NBC News] | Major |
| India’s Crude Through Hormuz | 60% of Gulf imports [NDTV] | Compromised | Critical |
| Textile/Pharma Exposure | 40% of cargo [linkedin] | At severe risk | Critical |
Major Shipping Disruptions: What CHAs Must Track
- Maersk, MSC Group, CMA MSC Suspension
Critical Shipping Line Decisions:
Companies Halted:
- Maersk (world’s largest container shipping company) [NBC News]
- MSC Group (second-largest container carrier) [NBC News]
- CMA Group (third-largest container carrier) [NBC News]
- Hag-L (Hapag-Lloyd) [NBC News]
- COSCO (China Shipping) [NBC News]
- Emirates SkyCargo [NBC News]
Action Taken: Either limited or completely suspended new bookings for the Hormuz region [NBC News]
CHAs Must:
- Contact clients on alternative shipping routes
- Track booking availability with remaining carriers
- Monitor freight price increases due to rerouting
- Prepare for vessel delays of several weeks
- Tanker Movement Collapse: 90% Decline
Oil Tanker Crisis:
Critical Data:
- Tanker movement through Hormuz plummeted 90% compared to previous week
- Oil and gas tankers congregating just outside the strait [NBC News]
- Strait effectively emptied by Middle East conflict [NBC News]
- Halt of oil tanker movement through key strait [NBC News]
CHAs Impact:
- Indian oil/gas import delays extending
- Fuel price increases affecting port operations
- Cooking gas shortage causing panic buying [BBC]
- Restaurant closures due to LPG shortage [BBC]
- Rerouting to Alternative Routes
Major Shipping Diversions:
New Route Patterns:
- Shipping services east of Hormuz doubled from 127 (Feb) to 257 (April) [Times of India]
- Red Sea services increased from 127 to 245 (May) [Times of India]
- Shipping west of Hormuz became “negligible” [Times of India]
- Rerouting via Africa around the continent [CNBC]
- Red Sea increase underscoring Indian maritime trade resilience [Times of India]
CHAs Action Plan:
- Guide clients on alternative West Asian ports
- Calculate extended timelines for rerouted shipments
- Monitor freight cost increases for longer routes
- Advise on insurance coverage for alternative routes
Impact on Indian Export Sectors: CHA Client Advisory
Textile Industry: Maximum Hormuz Exposure
Critical Risk Assessment:
- Textile exporters comprise 40% of Hormuz-exposed cargo [linkedin]
- Severe impact on movement of vessels through strait [Times of India]
- Rerouting delays spanning several weeks [NBC News]
- Vessel bunching at ports due to congestion [NBC News]
CHAs Client Advisory:
- Warn textile clients on 40% exposure risk
- Plan 2-4 week buffer for shipment delays
- Advise on alternative ports (Red Sea routes)
- Track European/US delivery timeline impacts
Pharmaceutical Industry: $31.1 Billion at Risk
Critical Risk Assessment:
- $31.1 billion in pharma exports threatened by West Asia crisis [India Times]
- Up to $600 million exports at risk from freight surges and maritime diversions [Pharmaceutical Commerce]
- Pharmaceuticals from India affected beyond oil [AP News]
- Zero duty on key chemical inputs relief introduced [India Times]
CHAs Client Advisory:
- Monitor pharma clients on chemical input supplies
- Track delivery deadline extensions for exports
- Advise on alternative sourcing for materials
- Apply government relief measures for exemptions
Fertilizer Industry: Evacuation Process Started
Critical Supply Chain Impact:
Fertilizer Evacuation:
- Ships loaded with fertilizer stuck west of Hormuz [Times of India]
- Process to evacuate by road to Yanbu Port (Saudi Arabia) started [Times of India]
- Then by ships to Indian ports from Yanbu [Times of India]
- Fertilizer department official confirmed evacuation [Times of India]
CHAs Action:
- Monitor fertilizer shipments stuck west of Hormuz
- Track Yanbu Port evacuation progress
- Coordinate with Saudi port authorities
- Advise clients on delayed fertilizer availability
Impact on Customs House Agents: Operational Changes
Day-to-Day CHA Workflow Modifications
- Extended Timeline Management
New Reality:
- Rerouting delays: several weeks [NBC News]
- Vessel bunching at ports: 25% [linkedin]
- Container dwell times: 7 days vs 3-day normal [linkedin]
- Tight congestion undermining “just-in-time” inventory systems [NBC News]
CHAs Must:
- Update client delivery timelines adding 2-4 weeks buffer
- Prepare for port congestion delays
- Advise on inventory planning for longer lead times
- Coordinate with multiple stakeholders for delays
- Increased Freight Cost Coordination
Cost Implications:
- Higher insurance costs for Middle East shipments [NDTV]
- Increased freight charges for rerouted vessels [NBC News]
- Global benchmarks jolted upward for oil prices [NDTV]
- Downstream effects land in India’s inflation basket [NDTV]
CHAs Action Plan:
- Calculate freight cost increases for clients
- Monitor insurance availability for alternative routes
- Track oil price impacts on logistics costs
- Update pricing models reflecting higher costs
- Insurance Coverage Challenges
Critical Insurance Issues:
- Insurers plan to withdraw war risk coverage for Persian Gulf vessels [Bloomberg]
- Majority of shipping industry may stay away given risks [CNBC]
- War risk insurance becoming unavailable
- Liability coverage complications for alternate routes
CHAs Must:
- Verify insurance coverage for client shipments
- Coordinate with insurance brokers for alternative coverage
- Advise clients on uncovered shipment risks
- Track war risk insurance availability
- Alternative Route Planning
New Route Options:
- Red Sea routes (increased from 127 to 245 services) [Times of India]
- Africa circumnavigation around the continent [CNBC]
- East of Hormuz routes (257 services by April) [Times of India]
- Yanbu Port (Saudi) for fertilizer evacuation [Times of India]
CHAs Action Plan:
- Develop alternative route templates for clients
- Calculate extended timelines for each route
- Track port availability at alternative destinations
- Monitor freight costs for different routes
Strategic Impact Chain: Understanding Maritime Disruption Flow
The Iran-US conflict creates cascading effects across the maritime supply chain:
- Strait Closures → Tanker movement 90% down → Oil supply compromised
2. Shipping Suspensions → Maersk/MSC halt → Container capacity reduced
3. Rerouting → Africa route → 2-4 week delays
4. Port Congestion → 25% bunching → 7-day dwell times
5. Inventory Pressure → “Just-in-time” systems fail → Business disruption
6. Fuel Price Increase → Higher costs → Port operations expensive
7. Inflation Impact → Food/gas shortage → Consumer panic buying
CHA Action: Map each disruption point to advise clients proactively on timelines and costs.
Government & Regulatory Support: India’s Response
Foreign Minister S. Jaishankar’s Negotiations
India’s Diplomatic Efforts:
Key Actions:
- India hopes talks with Iran will ease route for ships [BBC]
- Foreign Minister S. Jaishankar told FT (Financial Times) [BBC]
- No “blanket arrangement” for Indian ships through strait [BBC]
- India’s continued confidence among shipping stakeholders [Times of India]
- Resilience of Indian maritime trade demonstrated [Times of India]
CHAs Can:
- Monitor diplomatic negotiations progress
- Track Indian ship exemptions if granted
- Coordinate with government for shipping clearances
- Advise clients on government support measures
Shipping Ministry Strategic Policies
Government Policy Responses:
Key Measures:
- Resilience of Indian maritime trade maintained [Times of India]
- Sustained confidence among shipping stakeholders [Times of India]
- Fertilizer evacuation process started [Times of India]
- Alternative West Asian ports developed [Times of India]
- Red Sea route expansion approved [Times of India]
CHAs Can:
- Utilize government support for alternative routes
- Track fertilizer evacuation from Yanbu Port
- Monitor port development policies
- Access government coordination for delays
Current Status: June 2026 Disruption Level
Positive Developments
- Indian Trade Resilience:
- Increased services east of Hormuz (127 → 257) [Times of India]
- Red Sea services expanded (127 → 245) [Times of India]
- International shipping confidence maintained [Times of India]
- Indian maritime trade resilience underscored [Times of India]
- Government Support:
- Negotiations ongoing with Iran for ship passage [BBC]
- Fertilizer evacuation process initiated [Times of India]
- Alternative ports developed for West Asia [Times of India]
Remaining Challenges for CHAs
- Severe Disruption Continues:
- Tanker movement 90% down continues [NBC News]
- Shipping west of Hormuz negligible [Times of India]
- Vessels congregating outside strait [NBC News]
- Strait remains severely restricted [CNBC]
- Client Impact:
- 40-50% crude oil imports compromised [BBC]
- $31.1 billion pharma exports at risk [India Times]
- Textile 40% exposure remains critical [linkedin]
- Several weeks delays continuing [NBC News]
- Operational Pressure:
- Insurance withdrawals complicate coverage [Bloomberg]
- Freight cost increases affect margins [NBC News]
- Port congestion persists (25% bunching) [linkedin]
- Fuel price increases impact operations [NDTV]
Actionable Recommendations for Customs House Agents
Immediate CHA Actions (June 2026)
- Client Communication Protocol
Week 1: Alert All Clients
- Warn textile exporters on 40% Hormuz exposure [linkedin]
- Inform pharma clients on $31.1 billion risk [India Times]
- Alert oil/gas importers on 40-50% supply compromise [BBC]
- Notify fertilizer importers on evacuation process [Times of India]
Week 2: Timeline Updates
- Add 2-4 week buffer to all delivery schedules
- Update client expectations on rerouting delays
- Revise contract terms for extended timelines
- Prepare contingency plans for critical shipments
- Alternative Route Planning
Develop Route Templates:
- Red Sea routes (127 → 245 services) [Times of India]
- East of Hormuz routes (127 → 257 services) [Times of India]
- Africa circumnavigation around continent [CNBC]
- Yanbu Port (Saudi) for fertilizer [Times of India]
Calculate Metrics:
- Extended timelines for each route (+2-4 weeks)
- Freight cost increases for longer routes
- Port availability at alternative destinations
- Insurance coverage for different routes
- Insurance Verification
Critical Insurance Actions:
- Verify war risk coverage for current shipments
- Coordinate with insurance brokers for alternative routes
- Monitor insurer withdrawals from Persian Gulf [Bloomberg]
- Advise clients on uncovered shipment risks
- Track coverage availability for Red Sea routes
- Freight Cost Coordination
Cost Management:
- Calculate freight increases for rerouted shipments
- Monitor oil price impacts on logistics costs [NDTV]
- Update pricing models reflecting higher costs
- Negotiate with carriers on rate adjustments
- Track inflation basket downstream effects [NDTV]
- Port Congestion Monitoring
Operational Tracking:
- Monitor JNPA/Mundra 25% bunching status [linkedin]
- Track vessel arrivals at alternative ports
- Follow container dwell times (7 days vs 3-day) [linkedin]
- Coordinate with port authorities for delays
- Advise clients on pickup scheduling
For Exporters: Client Guidance
- Timeline Optimization
- Add 2-4 week buffer for All shipments
- Plan with extended delivery dates
- Consider alternative markets less affected
- Monitor Hormuz negotiations progress
- Route Selection Strategy
- Use Red Sea routes where possible (245 services) [Times of India]
- Consider East of Hormuz routes (257 services) [Times of India]
- Avoid Persian Gulf shipments due to insurance [Bloomberg]
- Track alternative ports for West Asia [Times of India]
- Cost Management
- Factor freight increases into pricing
- Monitor insurance coverage availability
- Calculate oil price impacts on operations
- Apply for government relief measures
For Importers: Supply Chain Planning
- Oil/Gas Import Strategy
- Plan for 40-50% supply compromise [BBC]
- Secure alternative sources for crude oil
- Monitor LNG availability through Hormuz
- Track LPG shortage impacts on operations
- Fertilizer Import Coordination
- Monitor evacuation process from Yanbu Port [Times of India]
- Coordinate with Saudi port authorities
- Track road transport to Yanbu [Times of India]
- Plan inventory for delayed fertilizers
- Chemical Input Management
- Track pharma chemical exemptions (zero duty) [India Times]
- Monitor alternative sourcing options
- Apply government relief measures
- Plan production for supply delays
Future Outlook: Post-June 2026 Maritime Recovery
Current disruption level remains critical with ongoing Iran-US conflict. Key factors affecting future recovery:
Positive Indicators:
- Indian trade resilience maintained despite crisis [Times of India]
- Alternative routes developed (Red Sea, East of Hormuz) [Times of India]
- Government negotiations ongoing with Iran [BBC]
- Shipping stakeholder confidence sustained [Times of India]
Risk Factors:
- Tanker movement 90% down continues [NBC News]
- Shipping west of Hormuz negligible [Times of India]
- Insurers withdrawing coverage from Persian Gulf [Bloomberg]
- Several weeks delays persisting [NBC News]
CHAs Should: Maintain continuous monitoring, advise clients on extended timelines, and prepare for ongoing disruption through late 2026.
Key Contacts for CHAs: Government & Maritime Authorities
For Navigation & Shipping:
- Shipping Ministry: Alternative West Asian ports information
- DG Shipping: Keynote address by Shri Shyam Jagannathan [Youtube]
- Indian Navy: Maritime security coordination
- Port Authorities: JNPA, Mundra congestion updates
For Insurance & Trade:
- Insurance Brokers: War risk coverage availability
- Customs Authority: CBIC for clearance procedures
- Fertilizer Department: Yanbu Port evacuation status [Times of India]
- Trade Associations: Industry coordination
About Maritime News Portal: India’s independent maritime industry news portal covering shipping, ports, seafarers, shipbuilding, maritime infrastructure, offshore energy, and supply chain developments [Maritime News]
Author: Jal Jaspal Singh Naol – Maritime industry analyst, content developer specializing in customs house agent guidance and export-import regulations.
