According to the Federation of Indian Export Organisations (FIEO), Indian export shipments are gradually resuming their route through the Red Sea after facing significant disruptions due to regional tensions. The cautious return to this path follows months of interruptions caused primarily by Houthi attacks near the Bab-el-Mandeb Strait, a crucial connector between the Red Sea and the Mediterranean Sea.
Last year’s instability forced shippers to divert routes around the Cape of Good Hope, significantly extending travel times by 14 to 20 days and inflating freight and insurance costs. This rerouting, while safer, adds considerable logistical challenges for exporters.
The Red Sea corridor is critical for Indian trade, facilitating around 80% of the country’s merchandise exchanges with Europe and a significant portion with the US, together representing 34% of India’s total exports. Notably, this strait is also essential for global commerce, accounting for 30% of container traffic and 12% of world trade. Prior to the recent changes, about 95% of vessels had been taking the longer route around Africa, adding an additional 4,000 to 6,000 nautical miles to their journeys.
