20 Jul 2026

West Asia Poultry Exports Hit by Rising Logistics Costs

West Asia’s ongoing disruptions are sharply increasing logistics costs for poultry exporters, particularly those in India supplying Gulf markets.

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West Asia’s ongoing disruptions are sharply increasing logistics costs for poultry exporters, particularly those in India supplying Gulf markets. Exporters face unstable shipping routes, higher freight rates, and growing reliance on costly air cargo to maintain product quality.

Fragile Export Networks

Disruptions across West Asia have exposed the vulnerability of India’s poultry export chain. Exporters supplying Gulf countries are struggling with delivery uncertainty, reduced visibility, and rising logistics costs. Poultry, being highly perishable, depends on predictable transit times. Even short delays erode product quality and force exporters to absorb higher handling costs or reroute shipments through less efficient corridors1.

Rising Freight Costs and Cold Chain Pressures

Industry participants report variable freight rates, extended dwell times, and rerouting challenges. For chilled and frozen poultry, dependency on cold chain infrastructure amplifies the impact. Additional handling increases costs and risks of quality degradation. Smaller exporters are most exposed, lacking the financial capacity to absorb volatility or quickly access alternative markets. Larger integrated players fare better but still face margin pressures as logistics costs rise.

Air Cargo Regains Strategic Importance

With maritime and overland routes unstable, airfreight is regaining relevance despite being significantly more expensive than sea freight. Exporters are turning to air cargo for reliability, as consistency has become as critical as cost. This trend mirrors other perishable sectors such as seafood and pharmaceuticals. However, air cargo is not immune to pressures: airspace constraints, fuel price volatility, and limited capacity allocation continue to drive up costs.

Export Competitiveness at Risk

According to trade reports, longer transit times and higher operational costs are undermining India’s poultry export competitiveness. Exporters are exploring alternative supply chain solutions, including closer coordination with logistics providers and shipping authorities. Maintaining reliable links has become a priority as geopolitical developments reshape global trade routes2.

Broader Supply Chain Challenges

The crisis is not limited to logistics. Rising oil prices and disruptions in feed ingredient supply chains—such as amino acids and phosphates—are compounding production costs. Packaging expenses have risen by 30–40%, while transportation costs have surged across the sector. Export hubs like Namakkal in South India have seen containers stranded at ports due to shipping disruptions, further straining exporters.

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Shift Toward Resilience

The disruptions are reinforcing a shift in supply chain strategy from efficiency to resilience. Exporters are prioritizing continuity over cost minimization, investing in diversified logistics options and risk management practices. While demand in Gulf markets remains steady, sustaining India’s position in global poultry trade now depends on building more robust and adaptable supply chains.

Sources:

1. West Asia Disruption Tests India’s Poultry Export Chain (2026).

2. India´s poultry shipments hit by rising logistics risks in West Asia (2026).


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