Escalating tensions in the Middle East are disrupting shipping and air freight routes, affecting fruit and vegetable exports from several producing regions supplying Gulf markets.
Shipping through the Strait of Hormuz between Iran and Oman has slowed sharply as vessels avoid the area following attacks on shipping and infrastructure. Clarksons Research reported that about 3,200 vessels remain inside the Gulf, equal to around 4 per cent of global shipping tonnage, including crude tankers and container ships. Around 500 vessels are waiting off the coasts of the United Arab Emirates and Oman.
"About 10% of the container ship global fleet is caught up in this," Nixon Jeremy, CEO of container carrier Ocean Network Express, said at S&P Global Market Intelligence's TPM26 container shipping conference in Long Beach.
"All of that cargo is going to start backing up" in shipping hubs and key ports in Europe and Asia, Nixon said.
Major carriers, including MSC, have stopped accepting cargo bookings to the Middle East region, while some vessels are being rerouted around the Cape of Good Hope, increasing transit times and costs. The disruptions are expected to cause congestion at ports and transshipment hubs.
Insurance coverage for vessels entering the Persian Gulf is also being restricted. Several protection and indemnity clubs have announced that war risk coverage for ships entering the region will cease from March 5. Without insurance, commercial vessels cannot operate, increasing the risk of further shipping delays.
Despite regional tensions, major Gulf logistics hubs report that port operations remain active. DP World stated that all terminals at Jebel Ali Port in Dubai are operating as usual. The company said safety and security measures remain heightened, and coordination continues with authorities.
"The safety and well-being of our employees, customers, and partners is our highest priority. We continue to monitor the situation closely and take all necessary precautions," DP World said.
Dubai authorities reported that debris from an aerial interception caused a fire at one of the berths at Jebel Ali Port. Dubai Civil Defence responded and contained the fire. Jebel Ali handles more than 15 million TEUs of container cargo annually and serves as a logistics hub connecting Asia, Europe, Africa, and the Americas.
AD Ports Group also confirmed that operations across its network remain unaffected, stating that crisis management and business continuity protocols have been activated.
The logistics disruptions are affecting the fresh produce trade to Gulf markets, particularly during the Ramadan demand period.
In India, exporters report large volumes of fruit and vegetables stranded at ports as container lines suspend services to the Middle East. Around 1,000 containers of produce are currently stuck at Mumbai ports, mainly the Jawaharlal Nehru Port Authority terminal.
Exporters say more than 150 containers of bananas, pomegranates, and watermelons are currently held up, while hundreds of containers carrying grapes and onions are awaiting booking or clearance. Around 250 to 300 refrigerated containers of bananas and nearly 100 containers of grapes are reported to be stuck at the port, while 350 to 400 additional containers of other goods are awaiting clearance.
Shipments already dispatched have also been affected. Traders say around 500 to 600 containers of bananas and grapes have not reached their destination due to port closures and logistics disruptions, while another 500 to 550 containers of other commodities are similarly affected.
Imports are also disrupted. Around 800 to 900 containers of apples, kiwis, and dates intended for India are reportedly stranded at Iranian ports. Each container of apples or kiwis carries about 23 to 24 tons of produce.
The disruption is also affecting prices. Traders say apple prices in India have increased by ₹30 to ₹40 per kilogram due to supply constraints, while domestic prices for export-oriented fruit such as bananas and grapes have fallen as shipments are delayed.
Nearly 150 containers of onions produced in Nashik and other parts of Maharashtra are also stranded at Jawaharlal Nehru Port. The containers hold around 4,500 tons of onions originally destined for Gulf markets. Exporters warn that domestic onion prices could fall if shipments remain suspended during the Ramadan period.
Grape exporters report that around 3,900 tons of grapes prepared for shipment to the Middle East will now have to be redirected to local markets. According to growers' representatives, the disruption could affect around 6,000 tons of grapes in total.
Air freight disruptions are also affecting exports from southern India. At airports in Kerala, flight cancellations to Gulf destinations have halted fruit and vegetable shipments.
At Calicut International Airport, about 70 exporters normally ship close to 90 tons of vegetables per day during the Ramadan period. Following flight cancellations, exporters were forced to offload about 30 tons of cargo, much of which spoiled.
"There were substantial orders for fruits such as bananas and pineapple in view of Ramadan. But exports from Karipur airport have almost come to a standstill," said Abdurahman M, managing director of Marvel Exports.
Kochi airport, which normally handles around 140 tons of cargo per day, including about 100 tons of perishables, has also reported a halt in shipments to Gulf destinations.
Similar disruptions are being reported in Bangladesh. Exporters in Chattogram say shipments of vegetables and fruits to the Middle East stopped after airlines suspended flights to the region.
Mohammad Mahbub Rana, owner of Green World Impact, said vegetables prepared for export to Dubai spoiled after flights were cancelled.
"Every day, green vegetables and fruits worth around US$250,000 are exported by air from Chattogram. After cancellations of flights, almost all prepared vegetables went to waste."
Exporters say prolonged disruption to air and sea logistics could lead to further losses for growers and exporters who rely on Gulf markets, particularly during seasonal demand periods.
Sources: Al Jazeera, Reuters, Financial Express, Splash, The New Indian Express, The Times of India, Punekar News, The Week, Construction Week
