Shipments to and from India are facing significant delays and higher freight rates, according to AGS India.
In an update to supply chain partners on 15 July, the company warned that ongoing instability around the Arabian Peninsula has reduced shipping capacity and pushed freight prices to their highest levels since 2024.
It said re-routing vessels around the Cape of Good Hope had reduced global shipping capacity by about nine per cent and most ocean freight bookings were now being accepted on spot rates only. Many contract and tariff rates are no longer available.
The disruption has increased congestion at west coast Indian ports, where cargo diverted from Gulf transhipment hubs has caused vessel bunching of around 25 per cent and minimum dwell times of seven days.
A shortage of truck drivers, and shipping lines prioritising higher-yield cargo over household goods, is adding significant pressure, said the company, with container yard utilisation at about 90 per cent.
The company warned freight rates can change before bookings are confirmed and that space on ships is extremely limited. Customers may also face additional carrier charges, including peak season, war risk, bunker adjustment and congestion surcharges.
AGS India has advised customers to confirm their bookings as early as possible while it works with shipping lines to secure the earliest available sailings at the most competitive rates.