Escalating hostilities in West Asia are disrupting global logistics, with Iran-backed Houthi rebels warning of renewed Red Sea attacks after Israeli and US strikes on Iran. Shipping majors are reverting to Cape of Good Hope routings, abandoning the limited Red Sea transits resumed last month. According to analysts, prolonged diversions could add 15-20 days to shipments bound for Europe and the US, inflating freight rates and marine insurance premiums. Roughly 50% of India’s exports—spanning textiles, chemicals and capital goods—and 30% of imports, including critical fossil fuels, transit the Red Sea corridor. Sustained instability risks higher energy prices, input cost inflation and pressure on the rupee, underscoring the need for calibrated policy support to safeguard export competitiveness, as per a report.
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