Kanpur: An export consignment of Kanpur leather products worth over Rs 500 crore is struck on sea routes following disruption near the Strait of Hormuz, raising serious concerns among leather exporters in Uttar Pradesh. Former chairman of the Council for Leather Exports, RK Jalan, said the exact value of consignments affected may vary but confirmed that several shipments are stranded due to the blockage of shipping routes. “The supply chain has been disrupted and no one knows when the route will reopen,” he said.Asad Iraqui, regional chairman of the Council for Leather Exports, said the leather industry is already feeling the impact of the conflict. “Ready products are either lying in factories or are stuck in transit,” he said, adding that overseas clients are pressing exporters to dispatch orders quickly amid fears that transportation costs may escalate further.India usually sends export consignments through the Cape of Good Hope route in South Africa, but the ongoing conflict has forced shipping companies to keep vessels stationed at safer locations, further disrupting trade.Exporters fear that the situation could worsen as global oil prices are rising due to the conflict. Jalan noted that any increase in crude oil prices would lead to higher transportation costs, which in turn would raise production costs for exporters.Among Gulf countries, the UAE and Saudi Arabia are major destinations for Indian leather exports, and both were affected by the regional tensions.Alok Srivastava, convener of the Federation of Indian Export Organisations, said around 300 containers are currently trapped due to the conflict in West Asia. He added that the central govt constituted a task force to address exporters’ concerns.“If the war continues for long, exporters will face a double blow—higher transportation costs and increased production expenses,” Srivastava said. Earlier, exporters faced difficulties due to increased tariffs imposed by the United States, which slowed down business activity and significantly affected exports during the Christmas season.
