Search
+
Invest with Confidence. Lead with Insights.
  • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

Trade

In red over Red Sea crisis: Indian exporters feel the heat as freight rates skyrocket

In red over Red Sea crisis: Indian exporters feel the heat as freight rates skyrocket
In red over Red Sea crisis: Indian exporters feel the heat as freight rates skyrocket
Getty Images
A cargo ship crosses the Suez Canal, one of the most critical human-made waterways, in Ismailia, Egypt

Synopsis

With shipping rates going up five times, products with high freight components and exporters with contract obligations to bear the transport and insurance costs face the pinch. Then there is the risk of some orders temporarily going to nearshoring options.

The Houthis have thrown India’s exporters a curveball. Since November 19, when the Iran-backed Yemeni group started attacking commercial ships passing through the Red Sea, shipping costs have surged two and a half to three times or more. In fact, shipping rates from Asia to Europe and US have surged nearly five-fold, going up to USD2,500-USD5,000 per 20-foot container in several cases. Right before the crisis in November 2023, shipping rates hit
( Originally published on Feb 15, 2024 )
  • FONT SIZE
  • SAVE
  • PRINT
  • COMMENT
New Feature Refer & Earn
ET

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

The Economic Times