Mint Primer | India and the Red Sea sharks: crisis without an end?
Houthi attacks on commercial ships in the Red Sea, in reprisal for Israeli bombing of Gaza, continue unabated and the disruption they are causing is beginning to pinch. As the crisis enters its fourth month, Mint looks at the impact on India and the sectors that have been hit. There are no signs at all of any improvement.
On Tuesday, a British registered cargo ship, ‘Rubymar’, which was on its way to Bulgaria from the United Arab Emirates, was hit by two ballistic missiles fired by Houthi rebels. The damage was significant and, for the first time since the crisis broke out in November, a ship had to be abandoned and is now at risk of sinking. This, despite the US and Britain resorting to bombing Houthi positions in Yemen.
Now, most shipping lines continue to avoid the Red Sea. Since mid-December, the number of crude carriers transiting through the Red Sea is down 60%. Slim at the moment.
Houthis say the disruption to global trade will force the world to persuade Israel to halt hostilities and announce a ceasefire in Gaza. A Houthi spokesman posted on the social media platform X the need was for an “urgent and comprehensive ceasefire" in Gaza and not militarization of the Red Sea. The opposite is happening.
The Israeli operation in Gaza continues. The US and Britain have started air strikes on Houthi positions in Yemen. The EU has launched a naval mission to protect ships.
A swift resolution looks improbable considering the geo-political standings of various countries. Freight rates, be it for containers or for carrying crude, have risen sharply as ships take a detour around Africa. Experts peg the rise at 30-50%.
Insurance costs have risen too. The transit time has increased by about two weeks on average. Containers
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