Inter-ministerial meet next week to discuss ways to insulate India's trade from Red Sea crisis

The Commerce Ministry has directed the Department of Financial Services (DFS) to monitor and ensure credit flow to exporters facing challenges due to increased freight costs in the Red Sea crisis. The move aims to support exporters dealing with elevated shipping expenses as consignments take longer routes, impacting both time and cost. The inter-ministerial meeting, chaired by Commerce Secretary Sunil Barthwal, involved officials from DFS, Shipping, external affairs, and defense ministries.

New Delhi, Jan 6 (PTI) The increasing Red Sea crisis may impact trade as it is expected to push shipping and insurance costs for exporters, and to deal with the situation the government should consider extending financial assistance to exporters, a report by economic think tank GTRI said on Saturday. It said the crisis could […]

India Business News: A container crisis in the Red Sea is expected to disrupt India's exports to Africa and Latin America. Shipping freight rates are likely to double, affecting exports of petroleum, automobiles, marine food, and agri commodities. Find out more about the impact and potential solutions.

Resolution calling for end to the attacks on shipping vessels by Yemen’s Houthis was adopted despite abstentions from Russia and China

The Iran-backed Houthi militia in Yemen has caused disruptions in global trade flow due to their attacks in the Red Sea. The Suez Canal, used by ships for 12% of global trade, is currently blocked due to hostilities, redirecting ships to pass through Africa. Capital goods and fertilisers are the most impacted sectors, with delays in timely delivery leading to inventory build-up and frozen order conversions. Fertilizers are affected by extended shipment timelines and increased freight costs, as India heavily relies on Middle Eastern countries for fertilizers, particularly Israel and Jordan.

The Global Trade Research Initiative (GTRI) warned that longer disruptions at the Red Sea trade route can harm manufacturing lines of sectors like electronics, automobiles, chemicals, consumer goods, and machinery. Just-in-time manufacturing processes are particularly vulnerable due to low inventory levels and reliance on timely arrivals. Disruptions in the Suez Canal can lead to delays in manufacturing and increased costs.

The ongoing crisis around the Red Sea shipping route, resulting from Houthi attacks on commercial vessels, may impact various industries in India. The Red Sea route via the Suez Canal accounts for 50% of the country's exports and 30% of imports. Sectors like agricultural commodities and marine foods, due to perishable goods and lean margins, could see significant impacts.

Iran security chief praises ‘brave actions’ of Houthi rebels who have targeted Israeli-linked vessels in shipping lane

International Business News: The recent attacks on ships and the decision to use the Black Sea route will impact Indian trade with increased freight rates, container supply proble

Commerce secretary Sunil Barthwal met shipping companies and exporters on Thursday to take stock of the situation as shipping giant Maersk decided to suspend all transits through the Red Sea/Gulf of Aden until further notice due to fresh attacks by Yemen-based Houthi rebels.