Red Sea Crisis: Houthi terror impact on Indian imports, transportation cost likely to increase by 60% and insurance premium by 20%
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Red Sea Crisis: Israel-Hamas Since the beginning of the war, the terror of Houthis has been increasing in the Red Sea. Due to this, international trade routes are being directly affected. Recently, some cargo ships were also harassed by the rebels. However, now 20 countries have come together to protect themselves from the Houthis in the Red Sea. According to the report, to promote maritime security, under the leadership of America, more than 20 countries including France, Britain, Greece, Denmark etc. have started an international campaign called Operation Prosperity Guardian. These will ensure the safety of cargo ships at sea. Meanwhile, news is coming that due to increasing crisis in the Red Sea, there is a possibility of deep impact on maritime trade. The cost of freight transportation via alternative route may increase by up to 60 percent and the insurance premium may increase by 20 percent. Economic research institute GTRI said in a report on Saturday that due to the deepening of the crisis in the Red Sea, the time taken to transport goods is expected to be delayed by 20 days and the cost will increase by 40-60 percent. Apart from increasing the insurance premium by 15-20 percent, there is also a possibility of damage to goods due to theft and attacks.
Import time extended to twenty days
The situation around the Bab-el-Mandeb Strait, a vital sea route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has deteriorated due to attacks by Yemen-based Houthi terrorists. Due to these attacks, ships are changing course and moving through the ‘Cape of Good Hope’. This is causing a delay of about 20 days and freight and insurance costs are also increasing. Global Trade Research Initiative (GTRI) said in the report that the disruption of the Red Sea trade route due to Houthi attacks has had a significant impact on Indian trade, especially with West Asia, Africa and Europe. Accordingly, India is heavily dependent on the Bab-el-Mandeb Strait for crude oil and LNG imports and trade with key regions. In such a situation, any deadlock in this region poses huge economic and security risks. GTRI estimates that about 50 percent of India’s total product trade with Europe and North Africa is through this route.
Attack only on countries associated with Israel: Houthi
Houthi rebels have once again made it clear that they will target only those ships on international trade routes that are linked to Israel. There is no threat to the ships of other countries. However, he has said that whichever country becomes part of the US-led force will be the target of Houthi. In an interview with the BBC, Mohammed Ali al-Huti, head of Yemen’s Supreme Houthi Revolutionary Committee, said that any country joining the US-led Red Sea Coalition would lose its maritime security and would be targeted. He clearly said that they can target ships belonging to Australia, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, Netherlands, New Zealand, Republic of Korea, Singapore and Britain.
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