Mangaluru: Coffee exports from Karnataka’s coastal trade hub are facing serious disruptions due to the ongoing crisis in West Asia, with shipments to Gulf countries delayed and freight charges increasing sharply. Exporters in Mangaluru say the situation has significantly affected supply chains, forcing traders to explore alternative shipping routes while dealing with soaring logistics costs.

The crisis has particularly impacted cargo movements that are typically routed through major Gulf ports. Exporters warn that if the disruption continues, it could affect trade volumes and reduce competitiveness in international markets.

Shipments to Gulf countries delayed

Exporters in Mangaluru said shipments of coffee destined for Gulf countries have been put on hold following disruptions at key ports in the region. A large portion of cargo from the coastal belt is usually routed through Jebel Ali Port, one of the busiest container ports serving the Gulf.

However, due to the ongoing crisis in West Asia, several consignments scheduled for dispatch have been delayed. Exporters noted that uncertainty in shipping schedules and port operations has created logistical challenges for businesses relying on regular export routes.

The Gulf region remains a significant market for Indian coffee, and any disruption in the supply chain has immediate consequences for exporters and traders based in Karnataka’s coastal districts.

Freight costs surge sharply

The disruption has also caused a steep rise in freight costs, further increasing the burden on exporters.

According to exporters, the freight charge for shipping a 20-ton container to Jebel Ali Port has increased dramatically from around $578 to nearly $3,800. Similarly, shipments routed through Shuwaikh Port have seen freight costs jump from about $850 to approximately $4,500.

The sharp increase in logistics expenses is placing pressure on exporters’ profit margins and making it difficult for them to maintain stable pricing in international markets.

Industry stakeholders say such sudden cost escalations can impact smaller exporters the most, as they operate with limited financial buffers.

Exporters shift to alternative routes

Faced with disruptions at traditional shipping hubs, exporters are now exploring alternative ports to keep supply chains operational.

According to Ganesh Chakrapani, a prominent coffee exporter based in Mangaluru, the closure and disruptions at key ports in the United Arab Emirates have forced traders to look for alternative routes.

One such alternative is Sohar Port, which exporters are now using to ship cargo. Under the revised logistics arrangement, coffee consignments are first transported by sea to Sohar in Oman.

From there, the cargo is moved by road to various Gulf countries, allowing exporters to continue supply despite disruptions in the usual maritime routes.

However, this workaround has come at a steep cost. Chakrapani said the new shipping arrangement has pushed freight charges up nearly sixfold compared to earlier rates.

Impact on Karnataka’s coffee trade

Mangaluru has long served as an important export gateway for coffee grown in Karnataka’s plantation regions, including Kodagu and Chikkamagaluru. The port connectivity and established trade links with the Gulf have made the coastal city a key hub for exporters.

With freight costs rising and shipments being delayed, exporters fear that prolonged disruptions could affect trade volumes and delivery commitments.

Industry representatives say buyers in the Gulf may face delays in receiving consignments, while exporters will have to absorb higher logistics costs or renegotiate pricing.

Uncertainty continues

Exporters are closely monitoring the geopolitical situation in West Asia, hoping for stability that would allow normal shipping routes to resume.

For now, businesses are relying on alternative ports and land transport networks to keep exports moving, though at significantly higher costs.

Industry stakeholders say that unless the situation improves soon, the disruptions could affect the competitiveness of Indian coffee exports in the Gulf market.