Disruptions around the Strait of Hormuz are rapidly turning a shipping problem into a wider cost challenge for Indian businesses, with significantly higher freight rates, war-risk charges, and rising raw material costs beginning to permeate supply chains.
Logistics industry officials The Economic Times Digital spoke to say the increase in landed costs, which include item price, shipping fees, customs, taxes, and charges for insurance and risk, can vary from 35 to 50% on some trade lanes, with extreme cases exceeding 200% after the recurring tension around Hormuz.
