March 5th, 2026 – Supply chains between India and the Middle East have largely ground to a halt after major ocean carriers suspended services and stopped accepting cargo along the key trade corridor amid escalating military tensions.
The disruption carries significant economic implications for India. The United Arab Emirates is India’s second-largest trading partner, and both countries signed a comprehensive trade agreement in 2022 aimed at boosting non-oil bilateral trade to $100 billion by 2030. With maritime transport forming the backbone of that trade relationship, the sudden halt in shipping services is expected to ripple across multiple sectors.
Refrigerated cargo has been particularly affected because of its time-sensitive nature, but the restrictions extend far beyond reefer shipments. Several major carriers have stopped accepting all cargo bound for key Middle Eastern markets until further notice. Maersk announced the immediate suspension of new bookings between the Indian subcontinent—including India, Pakistan, Bangladesh, and Sri Lanka—and Upper Gulf destinations such as the UAE, Bahrain, Qatar, Iraq, Kuwait, and parts of Saudi Arabia, including Dammam and Jubail.
Other global carriers have followed similar steps. Mediterranean Shipping Company (MSC), Hapag-Lloyd, and Ocean Network Express (ONE) have all halted bookings for shipments to the Middle East. ONE stated that cargo already in transit or shipments previously scheduled are being reviewed on a voyage-by-voyage basis as the company monitors the evolving security situation.
At the same time, carriers operating on the trade lane have introduced significant war-risk or emergency surcharges. These additional costs, intended to offset heightened operational risks in the region, range from approximately $1,500 to $3,000 per standard container. Maersk recently announced an emergency freight increase for the region, setting additional charges at $1,800 per twenty-foot equivalent unit (TEU), $3,000 per forty-foot equivalent unit (FEU), and $3,800 for refrigerated containers.
The abrupt suspension of services has already begun to create logistical bottlenecks in India. Containers originally destined for Middle Eastern ports are accumulating at Indian terminals as export cargo continues to arrive at port gates. Industry representatives warn that if shipping services do not resume soon, port congestion could quickly worsen as cargo volumes build.
Sunil Vaswani, executive director of the Container Shipping Lines Association in India, noted that shipments booked for Middle Eastern destinations are already piling up at several Indian ports. Without a swift resolution to the crisis, he warned that the mounting backlog could lead to serious congestion challenges across the country’s port infrastructure.
The disruption also extends beyond regional trade between India and the Middle East. India’s seasonal grape exports to Europe, which typically increase during this time of year, now face longer and less predictable transit times. Many vessels had already been diverting around southern Africa after Red Sea and Suez Canal routes were disrupted earlier, and the renewed instability is adding further uncertainty to shipping schedules and delivery timelines.
