- Commerce Department is monitoring the situation in the Red Sea closely due to concerns of higher freight costs, causing exporters to hold shipments, especially agriculture and textiles products.
- Increased freight and insurance costs result from ships avoiding the region due to attacks by Iran-backed Houthi rebels, compelling longer routes around the Cape of Good Hope.
- Exporters are withholding shipments, anticipating increased freight expenses. There might be delays of 12-14 days in container turnaround times, but no shortage of containers has been reported.
- While exports to the US west coast remain unaffected, shipments to Europe, North Africa, and the Middle East have been impacted. India exports goods worth $110 billion to these regions.
- The Commerce Department is yet to assess the precise impact of the crisis on Indian exports. A detailed evaluation to quantify delays and assess the situation is pending, given the ongoing nature of the situation.
- The Commerce Secretary chaired a meeting with exporters to discuss the Red Sea crisis’s trade impact. The assessment of the situation’s repercussions on trade remains a priority.