Key Points
This delays timely delivery of goods due to attacks by Houthi rebels in Yemen on cargo ships plying waters connecting Asia with Europe and the United States (US)...
As a result, traffic is being forced away from the Suez Canal and redirected around the tip of Africa, the market intelligence and analytics arm of CRISIL said in a research note..
Commenting on the Capital goods sector, CRISIL said, The ripple effect of such disruptions extends to various facets of the industry, potentially leading to an undesirable inventory build-up..
Israel constitutes 10-15% of MOP exports to India, while Jordan constitutes 25-30%, CRISIL said while adding that the Indian government has assured a sufficient buffer for fertilisers but MOP supplies from these countries will be affected if the situation persists for long...
Container shipping freight rates globally are now 2.5-3.0 times higher than in early December 2023, spot rates for vessels transiting through the Suez Canal particularly from Asia to Europe have surged nearly five-fold, CRISIL said while adding that rates from China to the US have more than doubled...
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