EFFECT OF CONFLICT BETWEEN IRAN-USA

The US-Iran conflict in the Strait of Hormuz has severely choked Gulf-bound shipping lines, leaving roughly ₹250 crores to ₹500 crores in Kanpur-origin leather and textile export consignments stranded at sea or stuck at saturated ports.

The sudden naval blockades, missile strikes, and skyrocketing shipping costs have forced logistics providers to anchor vessels and suspend transits through the region. Exporters face an unprecedented combination of cancelled orders and massive demurrage costs.

To navigate this crisis, Kanpur manufacturers are adopting several mitigation and relief strategies: [1]

• Activate Alternate Routes: Leading shipping lines (like Maersk and CMA CGM) are rerouting remaining cargo around the Cape of Good Hope, bypassing the Gulf completely. Exporters are advised to coordinate with their freight forwarders to see if this is viable for current shipments.

• Review Force Majeure: Consult legal experts to invoke Force Majeure clauses in existing contracts to protect your business from liability for delayed or non-delivered goods.

• Leverage Export Council Aid: Reach out to the Federation of Indian Export Organisations (FIEO) or the Council for Leather Exports (CLE) to register your stuck consignments. These bodies are actively representing the losses of UP-based clusters to the Ministry of Commerce for targeted relief packages.

• Claim Credit Support: Discuss Export Credit Guarantee Corporation (ECGC) coverage with your banking partners to secure compensation for commercial and political risks, including transit blockades.