Indian leather, leather products and footwear exporters are growing anxious as tensions in the Middle East threaten to disturb global trade routes. With global trade routes passing through sensitive zones many in the industry fear that a prolonged conflict could directly hit shipments costs and delays.
When Leathernews.org spoke to a few Indian leather, footwear and leather products exporters they raised fresh concerns over supply chain disruptions and rising freight costs and also said any prolonged conflict could slow orders, disrupt payments, affect overall performance and lead to job losses in the sector.
They fear delays higher insurance premiums and rising transportation costs for shipments going to the US and Europe.
If instability continues key shipping routes in the Red Sea and Gulf region could be disrupted. That would mean vessels taking longer detours and rerouting via the Cape of Good Hope which could add 15 to 20 days to transit time for Europe and the US.
Air routes are also being altered adding time and cost to every consignment.
Exporters also recall the 2024 Israel-Hamas conflict which forced ships to avoid the Red Sea and take longer routes. Many fear a repeat if the current war drags on.
For now exporters are watching closely but the message is clear. If tensions escalate logistics costs will rise and delivery timelines will stretch.
