Israel-Hamas war: Higher shipping costs, premiums may lower export margins

Escalation of violence may impact trade volumes, say experts

With West Asia becoming a riskier geography by the day, exporters may have to face a thinning of their margins due to higher shipping costs and insurance premiums in the wake of the Israel-Hamas war, say experts.

“While the Israel-Hamas conflict has the potential to increase shipping costs and insurance premiums for Indian exporters, the impact on trade volumes remains relatively limited at this stage. The bilateral trade relationship between India and Israel has diversified in recent years, encompassing various sectors beyond diamonds and petroleum products,” Germany-based analytics firm Container Xchange told Business Standard.

While the conflict may result in higher expenses