Indian exporters are staring at a surge in shipping costs as freight lines are forced to avoid the Suez Canal and take a longer route around Africa to reach the West following tensions in the Red Sea. The alternate route around the Cape of Good Hope could increase shipping time between Mundra and Rotterdam by a third, experts said, adding that freight rates are likely to go up steeply. Leading global shipper Maersk on Tuesday said all its vessels bound for the Red Sea are being re-routed for safety reasons. All major global shipping lines paused their Suez Canal-bound vessels last week following Houthi militia attacks on freight ships in the region. “We have faith that a solution enabling a return to using the Suez Canal and transiting through the Red Sea and Gulf of Aden will be introduced in the near future, but at this time it remains difficult to determine exactly when this will be,” Maersk said in a client advisory. An estimated $200 billion worth of Indian exports flow every year through the key waterway connecting the Mediterranean and the Red Sea.
