Key Points
When the global economies are struggling, battling inflation and having a tough time to merely sustain, the Iran-backed Houthi militia from Yemen that seeks "Death to Israel" have, for months now, created quite some ruckus in global trade flow with their amped up attacks in the Red Sea...
While its impact of Red Sea disruptions on various trade sectors in India may vary, a CRISIL research report shows that Capital goods and fertilisers are the most impacted...
As for the fertilisers, the high impact is seen in terms of extended shipment timelines by nearly 15 days and hiked freight costs, as India is heavily reliant on Middle East for fertilisers, especially on Israel and Jordan..
About 10-15 per cent of exports of one of the key fertilisers, muriate of potash (MOP) come from Israel to India, while Jordan constitutes 25-30 per cent of the same.. "Though the Indian government has assured a sufficient buffer for fertilisers, MOP supplies from these countries will be affected if the situation persists for long," the analytics company said.. 'Medium impact on Crude'..
If the situation and Red Sea disruptions persists, the impact may be seen as it is the shortest route connecting Asia with Europe and North America, as players may incur higher shipping surcharges and freight costs, therefore taking a hit on their margins.. " The delay in product deliveries may lead to an additional financial burden on them..
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