• Thu. Jul 25th, 2024

Exports may take $30 billion hit over Red Sea threats


Jan 8, 2024
Exports may take $30 billion hit over Red Sea threats


India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments.
The initial assessment, conducted by the Research and Information System for Developing Countries, a New Delhi-based thinktank, would mean a 6.7% drop in Indian exports, based on last fiscal year’s $451 billion total.
“The crisis in the Red Sea would indeed impact India’s trade and may lead to further contraction,” said Sachin Chaturvedi, director general of the thinktank. The government hasn’t released any official estimates on the impact of the Red Sea crisis on Indian exports.
The number of ships passing through the Suez Canal is down about 44% compared to the average for the first half of December, according to Clarkson Research Services, a unit of the world’s largest ship broker. Vessels with a combined tonnage of about 2.5 million gross tons passed through in the week to January 3, compared with about 4 million tons at the start of last month, they said.
Yemen’s Iran-backed Houthi militants have targeted vessels transiting through the Red Sea with missiles in recent weeks. The Houthis say they are going after any vessels that have a connection with Israel. For India, the Red Sea is a major route for shipping to Europe, the US east coast, the Middle East and African countries.


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