Kandla/Mundra: The ongoing West Asia conflict has forced the Kandla–Mundra Container Transport Welfare Association (KMCTWA) to announce a 20% hike in freight charges from Tuesday. The decision comes amid rising bulk diesel prices and supply constraints that are likely to affect export-import logistics in Gujarat as well as other parts of the country.

KMCTWA, which represents more than 10,000 container trucks operating between Kandla, Mundra, and different regions of India, issued a trade notice on Monday stating that the diesel shortage has created major operational difficulties for transporters.

The notice said that due to the Middle East war situation, diesel availability at retail pumps has become limited, creating major operational difficulties for transporters. The association also pointed out that the industrial diesel price has increased to around Rs 112 per litre, significantly raising operating costs for transporters who usually purchase fuel in bulk.

KMCTWA president Bhagirathsinh Jadeja also stated that while public sector companies are supplying bulk diesel at around Rs 112 per litre, private suppliers are charging nearly Rs 121 per litre, leaving transporters with no option but to revise freight rates.

In its notice, the association announced that transportation rates for all destinations will increase by 20% with immediate effect, and payments will have to be made in advance for 24 hours, as most essential supplies are currently available only under such terms.

Experts believe the freight hike may lead to a ripple effect on domestic prices, making commodities such as edible oil, fertilisers, coal, chemicals, and plastics costlier due to higher transportation charges.

KMCTWA clarified that the rate hike is temporary and will be withdrawn once diesel supply returns to normal. DeshGujarat