Now Reading: Red Sea, Hormuz Disruptions Could Double India’s Freight Costs
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Red Sea, Hormuz Disruptions Could Double India’s Freight Costs
India-bound cargo may face a 30 to 35-day longer voyage and nearly double freight costs as shipping risks rise around the Strait of Hormuz, Bab el-Mandeb and the southern Red Sea, The…
The Story in Brief
India-bound cargo may face a 30 to 35-day longer voyage and nearly double freight costs as shipping risks rise around the Strait of Hormuz, Bab el-Mandeb and the southern Red Sea, The Times of India reports. Indian National Shipowners’ Association chief Anil Devli said cargo from Saudi Arabia’s Yanbu port had effectively frozen, with ships potentially forced to sail around Africa and the Cape of Good Hope.
The warning follows the capsizing of Indian cargo vessel MSV Faize Noore Oliya after it was struck by a projectile off Yemen. All 14 crew members were rescued, including 13 Indians. The shipping ministry has advised vessels to exercise extreme caution. India is also widening crude purchases beyond Gulf suppliers, sourcing from more than 40 countries.
The Indian Opinion
Claims that the disruption will instantly cripple India overstate the evidence, while treating alternative crude purchases as a complete solution is equally careless. Longer routes still mean higher costs, tighter vessel availability and greater crew risk. The practical test is whether Yanbu cargo can move safely without the Africa detour, and whether freight rates actually approach double the normal level.
Source: timesofindia.indiatimes.com
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