After recovering from the Red Sea crisis, clouds of concern once again started looming over exports – ..

India’s exporters suffered a major setback after Houthi attackers attacked ships in support of Gaza in the Red Sea. This development led to a two-and-a-half-fold increase in fares in January and an increase in war risk premium rates. Now, while prices have continued to fall, prices have risen again after Iran retaliated against Israel late last week. Therefore, this relief is a short-term option for exporters who have barely found relief from falling prices.

According to shipping industry experts, it is still the beginning of the new Maathi Dasha, so it is too early to say what the exact outcome will be, but one thing is certain that clouds of uncertainty will surround the shipping market. The time to come. While the Red Sea crisis is still not completely averted, new developments have created a situation where exports through the Strait of Hormuz, located between the Gulf of Oman and the Persian Gulf, will face new obstacles. This could have a serious adverse impact on trade in Dubai and especially through Jabei Ali, an important hub for global trade. At some stage for Indian traders and shippers, freight rates have increased by 20 percent in just three days and there is no telling how much the price will increase. Additionally, shipping costs to various regions are expected to increase by 5 to 20 percent due to increase in war risk premium.