West Asia Crisis Hits Himachal’s Baddi-Barotiwala-Nalagarh Industry: Exports Delayed by 12 Days, Shipping Costs Double

The ongoing crisis in West Asia is beginning to take a serious toll on industries in Himachal Pradesh’s Baddi-Barotiwala-Nalagarh (BBN) industrial belt. Exporters in the region are facing longer shipping times, rising logistics costs and increasing prices of imported raw materials, creating fresh challenges for manufacturers already operating on tight margins.

The BBN belt is one of North India’s largest industrial hubs and exports a wide range of products including engineering goods, pharmaceuticals and plastic products to European markets. However, the disruption of traditional shipping routes through the Middle East has significantly slowed down global supply chains.

Shipping Time Jumps by 10–12 Days

Industry representatives say vessels that earlier travelled through the Middle East are now being forced to take a longer route around the African continent due to the ongoing crisis.

As a result, export consignments from the BBN region that earlier took around 21 days to reach Europe are now taking nearly 31–32 days.

Sandeep Verma, an exporter from the region, said the sudden change in shipping routes has dramatically increased both time and cost.

“Containers that used to reach Europe in three weeks are now taking over a month. Logistics costs have also more than doubled in a very short period,” he said.

Logistics Costs Surge, Containers Pile Up

The disruption has triggered a ripple effect across the entire supply chain. Shipping companies are struggling to manage the sudden change in routes and schedules, leading to congestion at several global ports.

Exporters say major European ports, including Port of Hamburg and Port of Rotterdam, are experiencing delays as cargo volumes rise.

The cost of hiring containers has also skyrocketed.

According to exporters, container rental charges have jumped from around $800 to nearly $2,000 within a week, making shipments far more expensive.

Some exporters have even started recalling containers to avoid mounting logistics costs.

Raw Material Prices Rise Sharply

Apart from logistics challenges, manufacturers in the BBN industrial belt are also dealing with rising prices of imported raw materials.

Products that rely heavily on petrochemical and aluminium-based components are particularly affected. Industry insiders say the cost of certain specialised materials has increased by as much as 30 percent in recent days.

This has directly impacted the manufacturing of household appliances such as steam irons, mixer grinders and beard trimmers.

However, due to existing international trade agreements, many companies are unable to increase retail prices, forcing them to absorb the additional costs.

Exporters Face Additional Routing Challenges

Exporters shipping goods to Afghanistan and other Middle Eastern countries are facing another hurdle. Pharmaceutical exporter SL Singla said consignments are now being routed through Dubai, where cargo must be transferred onto another vessel before reaching its final destination.

This additional transshipment step is increasing both delivery time and operational complexity for exporters.

Industry Calls for Government Monitoring

Industry leaders say the crisis is not limited to global logistics alone. Rising fuel prices and shortages of commercial LPG and CNG have also begun affecting manufacturing operations in the region.

Rajiv Aggarwal, former president of the BBN Industries Association, has urged authorities to monitor commercial LPG prices to prevent overcharging in the industrial belt.

If the geopolitical crisis continues for a prolonged period, exporters fear that industries in the region could face significant financial losses.

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