West Asia crisis disrupts exports, shipping time from Baddi-Barotiwala-Nalagarh industrial belt rises by 10-12 days

The ongoing crisis in the West Asia is beginning to severely impact industrial activity in the Baddi-Barotiwala-Nalagarh (BBN) industrial belt, with exporters facing shipment delays, rising logistics costs and expensive imported raw materials.

Export consignments from the BBN region, which supplies engineering goods, pharmaceuticals and plastic products to European markets, are now taking significantly longer to reach their destinations. Industry players say shipping routes through the Middle East have become inaccessible, forcing vessels to take a longer route around the African continent.

Sandeep Verma, an exporter from the region, said consignments meant for Europe are now being routed through Africa, adding nearly 10 to 12 days to the transit period. “A container bound for Europe now takes about 31-32 days compared to the usual 21 days. The diversion has also more than doubled logistics costs,” he said.

Supply chain shock: Industry feels the heat

• The disruption of traditional shipping routes through the Middle East has triggered a domino effect for industries in the Baddi-Barotiwala-Nalagarh belt. Export consignments are taking up to 10-12 days longer to reach Europe as ships are forced to sail around Africa
• Logistics costs have more than doubled in a week, while congestion at key European ports has slowed deliveries further. At the same time, prices of imported petrochemical and aluminium-based raw materials have risen sharply
• With trade agreements limiting price hikes on finished products, manufacturers say profit margins are shrinking rapidly, raising fears of significant losses if the crisis continues

The disruption has created a cascading effect across the supply chain. Containers are piling up at ports as shipping companies struggle to manage altered routes and schedules. Exporters are also reporting congestion at major European ports such as the Port of Hamburg and the Port of Rotterdam, further delaying deliveries.

Given these delays, some exporters have started recalling containers to avoid mounting logistics expenses. Industry representatives say the availability of containers has also been affected due to the ongoing disruption.

“The cost of hiring a container has more than doubled from about $800 to nearly $2,000 within a week,” Verma said, adding that such high costs are making exports commercially unviable as buyers are unwilling to bear the increased conversion cost.

Investors fear that if the situation persists, industries will face heavy financial losses. Apart from logistics issues, manufacturers are also grappling with rising fuel prices and shortages of commercial LPG and CNG over the past week.

Rajiv Aggarwal, former president of the BBN Industries Association, said the government should closely monitor the prices of commercial LPG and prevent overcharging in the industrial belt.

Exporters targeting markets such as Afghanistan and other Middle Eastern countries are also encountering difficulties. According to pharmaceutical exporter SL Singla, shipments are now being routed through Dubai, where cargo must be transshipped onto another vessel before reaching its final destination.

Manufacturers of kitchen appliances are particularly affected as they rely heavily on imported petrochemical and aluminium-based raw materials. Some specialised materials have witnessed price increases of up to 30 per cent, pushing up the cost of products such as steam irons, mixer grinders and beard trimmers. However, due to existing trade agreements, companies say they cannot raise retail prices, leaving them to absorb the losses.