Morbi Ceramic Industry Hit Hard as 1,500 Containers Return

Morbi | Gujarat —The ongoing conflict between Iran and Israel has triggered an unprecedented crisis in Gujarat’s ceramic hub of Morbi, crippling exports and pushing manufacturers into deep financial distress.

Already reeling under gas shortages that forced the closure of over 450 factories, the industry is now facing a fresh blow as key export routes to Gulf Cooperation Council (GCC) countries have come to a standstill. With major ports in Dubai, Oman, Sharjah, Qatar, and Kuwait shutting operations amid the conflict, exporters say around 1,500 containers loaded with ceramic tiles have been forced to return.

“This is one of the worst crises the ceramic industry has ever seen,” said a local exporter on condition of anonymity. “Containers are wandering at sea for 10–15 days and then being sent back. There is no clarity, no guarantee, and massive financial losses.”

Morbi, which exports ceramic products worth nearly Rs 20,000 crore annually, depends heavily on GCC markets that account for about Rs 5,000 crore of shipments. On average, nearly 15,000 containers are dispatched every month to these regions, making the disruption particularly severe.

The situation worsened after reported attacks near key ports during the conflict, leading to the suspension of shipping operations. Industry sources revealed that vessels carrying Morbi’s tiles were left stranded at sea before being diverted to Indian ports such as Kandla Port and Mundra Port.

Adding to the crisis is a sharp spike in freight costs. “Earlier, sending a container to Dubai cost around Rs 50,000 to Rs 60,000. Now, shipping lines are demanding up to Rs 3 lakh per container, and even then, there is no assurance of delivery,” said an industry stakeholder.

Prashantbhai Kaila of Hardeep Shipping Logistic Pvt. Ltd. highlighted the scale of disruption  “Only one port, Khorfakkan, is partially operational, but waiting time there is 10–15 days. Shipping companies are unloading cargo at random ports, leaving exporters stranded.”

The cascading impact has left manufacturers grappling with rising inventory, blocked capital, and shrinking margins. “It has reached a point where transporting goods costs more than producing them,” another exporter remarked, describing the situation as “clay becoming more expensive than gold.”

Industry leaders warn that unless the geopolitical tensions ease soon and shipping routes normalize, the crisis could deepen further, leading to prolonged shutdowns and job losses in the region.