Key Points
New Delhi: Industry is bracing for a 30% rise in freight and insurance costs, and delays of around 15 days for consignments to reach Europe, with global shipping majors avoiding the Red Sea and Suez Canal...
Sector watchers said that the alternate route between Europe and Asia through the Cape of Good Hope will take two-three weeks more, depending on where the consignment is to be delivered..
This is likely to result in containers being held up in transit for longer and freight prices firming up...
The Red Sea and Suez Canal are on a crucial shipping route for India as goods between Europe and Asia move through them..
"It may lead to a rise in freight also since the alternative is to sail around the Cape of Good Hope, which adds up to 10 days sailing time for ships from Asia to North Europe and East Mediterranean," he said.. Sahai said that overall, there could be a 30-40% rise in costs...
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