Red Sea crisis: Costs rising; Indian shippers are holding consignments
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New Delhi: Due to the chaotic situation in the Red Sea, shipping costs are rising, leading Indian exporters to hold their consignments, PTI reported.
The news portal cited information from export promortion councils in commerce ministry.
Commerce Secretary Sunil Barthwal said that the government has provided a cushion to exporters by asking the ECGC not to increase the export credit interest rates.
State-owned ECGC is an export promotion organisation, seeking to improve the competitiveness of Indian exports by providing them with credit insurance covers.
"To that extent, we are going to give that kind of comfort to our exporters," Commerce Secretary Sunil Barthwal told reporters here.
He added that if the demand is robust in Western countries, Indian exports will grow.
India's competitor nations are also facing higher costs due to the crisis.
"Therefore, they are as less competitive as we are. It fairly balances everybody. So ultimately, it (exports growth) will depend upon demand over there (in the Western world)," he said.
The crisis is impacting shipping lines and containers, and due to this, freight rates are high.
"It is a global issue, it is not an India-specific issue. A lot of commodities move from the eastern side to the western from the Suez Canal. Everybody is concerned about it, looking into it and trying to help each other. So let us see how this global cooperation works out," he said.
The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants.