Now Reading: Hormuz, Red Sea disruptions may double India’s freight costs
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Hormuz, Red Sea disruptions may double India’s freight costs
India-bound cargo could take an extra 30 to 35 days and face nearly double freight costs if disruptions continue at the Strait of Hormuz and Bab el-Mandeb, the Indian National Shipowners’ Association…
The Story in Brief
India-bound cargo could take an extra 30 to 35 days and face nearly double freight costs if disruptions continue at the Strait of Hormuz and Bab el-Mandeb, the Indian National Shipowners’ Association told The Times of India. 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.
The Economic Times reports that landed costs on some routes have risen 35% to 50%, with extreme cases exceeding 200%. Freight to Gulf destinations has sharply increased, while energy and petrochemical supply disruptions are adding pressure on Indian manufacturers. India has widened crude purchases beyond Gulf suppliers, sourcing from more than 40 countries.
The Indian Opinion
Claims that every imported product will immediately become unaffordable are exaggerated, just as dismissing the shock as a shipping problem is too narrow. Costs vary by route, cargo value and contract terms. But the risks are real when freight, insurance, fuel and raw material prices rise together. The clearest test will be whether higher logistics costs start appearing in retail prices over the next few months.
Sources (2): timesofindia.indiatimes.com, retail.economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
