According to exporters’ organization FIEO, Indian export shipments have progressively resumed traveling via the Red Sea route. Following months of route interruptions brought on by regional tensions, the slow movement indicates a cautious rebound in shipments. Due to strikes by Houthi terrorists based in Yemen, the situation surrounding the Bab-el-Mandeb Strait, a vital shipping route that connects the Red Sea and the Mediterranean Sea to the Indian Ocean, intensified last year.
Due to attacks, the shippers were taking consignments through the Cape of Good Hope, encircling the African continent, resulting in delays of almost 14-20 days and higher freight and insurance costs.
Around 80 per cent of India’s merchandise trade with Europe passes through the Red Sea and substantial trade with the US also takes this route. Both these geographies account for 34 per cent of the country’s total exports. The Red Sea strait is vital for 30 per cent of global container traffic and 12 per cent of world trade. About 95 per cent of the vessels had rerouted around Cape of Good Hope adding 4,000-6,000 nautical miles and 14-20 days to journeys.
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