Summary: The Yemeni Houthi militia’s attacks on ships in the Red Sea have caused the cost of Indian exports to more than double, industry experts report. The recent attack on a US-owned ship bound for the Suez Canal, carried out by the Iran-backed Houthi rebels, has further heightened tensions in the strategic region. Approximately 80% of India’s goods trade with Europe passes through the Red Sea, and the attacks have led to a rerouting of vessels around the Cape of Good Hope, adding significant time and costs to journeys. Chinese shipping lines, including Maersk and MSC, have temporarily halted operations in the Red Sea. The increased shipping costs and delays in delivery are expected to impact Indian exports by at least $10 billion in the fiscal year to March 2024.
Incident Occurred South of Aden: Monday’s attack occurred approximately 110 miles southeast of Aden. The ship’s captain reported that the vessel was hit by a missile from above. The UK Prime Minister condemned the ongoing attacks by the Houthi rebels and stated that the UK Navy has taken action to destroy planned targets, minimizing civilian casualties. Indian exporters are facing significant challenges, with rising shipping costs and delays in shipping schedules causing a quarter of this month’s exports to be held up. Shipping companies have threatened to raise freight costs even further later this week.
The increasing attacks on shipping in the Red Sea pose a significant threat to global trade and security in the region. The US and UK have previously launched strikes on Houthi military infrastructure to protect the crucial corridor connecting Asia and the Middle East. As tensions continue to escalate, it is crucial for international authorities to take decisive action to safeguard trade routes and ensure the smooth flow of goods.
The source of the article is from the blog combopop.com.br