Impact of attacks on ships in the Red Sea: Transportation becomes costlier by ten percent

The Israel-Hamas war is becoming a big blow to the industries emerging from the Covid pandemic. In protest against the attacks, Iran-backed Yemen’s Houthis have started attacking commercial ships passing through the Red Sea. The Red Sea is an important waterway for international trade. The impact of Yemen’s Houthi rebels targeting the merchant ships passing through here is beginning to be seen on transportation.

However, the Indian Navy is capable of dealing with the attacks. But due to constant patrolling and providing security, the expenditure is increasing. Which has a direct impact on transportation costs.

Due to this, the cost of transportation of goods has increased by ten percent.

About 12 percent of the world’s goods are transported through the Suez Canal. It is the shortest water route between Europe and Asia.

All ships passing through the Suez Canal must pass through the Red Sea and the Gulf of Aden. Because of this, ships become targets of Houthi terrorists.

Most ships through the Suez Canal carry goods to Europe or the Americas. Most of the trade between Asia and Europe also takes place through this canal.

Therefore, this is a very important demand from the industry point of view. On which Houthi attacks are emerging as a major threat to world industry. Due to problems in transportation of goods, the supply of raw materials and finished goods to industries may be affected. Which cannot in any sense be considered as the right conditions for the industry.

Trade associations believe that its adverse effects may not be immediately visible. But without a permanent solution to the problem, this situation cannot continue for long. Because due to attacks, transportation will have to be stopped. Which will take additional time. Additionally, ships would have to travel via the Cape of Good Hope, which is a long distance.

This may also impact Indian industry to some extent. Because from here the Red Sea route is used to send goods by ship to some parts of Asia, such as Egypt, as well as to countries like Northern Europe, Netherlands, etc.

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