Suez crisis: India provides security to consignments in high seas: Official

Around 12 percent of global trade passes through the Red Sea region

Amid the spate of recent attacks in the Red Sea region, a senior government official on January 5 said that the Indian government is providing security to consignments in the high seas.

The official who wished to remain anonymous said that many consignments are being escorted in the high seas with the help of Indian defence forces.

The Center on January 4 conducted a meeting with representatives from shipping companies and exporters on the Suez Canal crisis and higher shipping costs as a fallout of this development.

"The cost of freight and insurance have increased as ships are being forced to take the longer route to avoid the Red Sea region. Though, there is no shortage of containers, vessels are facing longer turnaround time by 14 days on account of longer routes across Africa," the official said.

Moneycontrol exclusively reported on January 5 that India is mulling a variety of measures, including subsidisations for Indian exporters to offset higher shipping costs and insurance premiums. New Delhi is also in touch with the US-led multi-nation coalition to ensure the safe passage of commercial vessels in the Red Sea.

Following the Israel-Hamas war in October, the Red Sea, a route through which around 12 percent of global trade passes, has been in the news for periodic attacks on commercial vessels by the Houthi rebels of Yemen, sparking concerns over its impact on global maritime commerce.