Export Freight Cost Doubles Amid Red Sea Attacks: EEPC

ENA Sectors 2024-01-16 16:43:43 New Delhi, Jan 16 (KNN) Since the onslaught of Yemeni Houthi militia on cargo ships began in Red Sea, the cost of freight has more than doubled, the industry sources revealed on Monday. The cost of a 24-foot shipping container from India to Europe, the eastern coast of America, and the UK has surged to USD 1,500 from USD 600 before the Red Sea attacks says Arun Kumar Garodia, Chairman of the Engineering Export Promotion Council of India (EEPC). Approximately 80 per cent of India's goods trade with Europe, valued at nearly USD 14 billion per month, usually transits through the Red Sea, as per government estimates. Exporters noted that since the Houthi militants began attacking shipping in November, about 95 per cent of vessels have rerouted around the Cape of Good Hope at the southern tip of Africa. This redirection has added 4,000 to 6,000 nautical miles and 14-20 days to journeys from India. Garodia anticipates that Indian exports, valued at least USD 10 billion, will be impacted in the fiscal year ending March 2024 due to escalating shipping costs and order delivery delays. Shipping companies are threatening to further raise freight costs later this week. Exporters also reported that approximately a quarter of this month's exports are held up due to delays in shipping schedules. Senior Indian trade ministry official Satya Srinivas stated on Monday that the sailing of most ships has been impacted, generally postponed by 2-3 weeks due to delays in incoming ships with longer routes. While some recent consignments have been put on hold, December exports, estimated at USD 38.45 billion, were not directly impacted by the Red Sea crisis. (KNN Bureau) 36302 https://knnindia.co.in/news/newsdetails/sectors/export-freight-cost-doubles-amid-red-sea-attacks-eepc 2024-01-16 16:43:43 knnindia.co.in Export Freight Cost Doubles Amid Red Sea Attacks: EEPC