India’s exports in the current fiscal year ending March 31, 2024, could be $30 billion lower due to rising container shipping tariffs caused by threats of attacks on ships in the Red Sea by Yemen’s Houthi rebels. An Indian newspaper reports this Business Standard.
According to Sachin Chaturvedi, the centre’s chief executive, the crisis in the Red Sea “will really impact India’s trade and could lead to a 6.7% decline to $30 billion.”
Due to threats to shipping, Indian exporters are forced to restrict shipments of around 25% of cargo bound for Europe, the US, the Middle East and Africa via the Red Sea. This was stated by Ajay Sahay, president of the Federation of Indian Export Organizations.
Shipping containers that bypass the Red Sea extend delivery times by several weeks and increase the cost of transporting a 40-foot container from $2,000 to $6,000, according to economists.
Houthis in mid-November was threatened Strike Israel and cut off shipping in the Red Sea due to escalation of the Palestinian-Israeli conflict.
Previously in the USA stated About the beginning of Operation Prosperity Guardian in the Middle East.