New Delhi, 29 May 2025
According to the Federation of Indian Export Organisations (FIEO) export shipments from India are once again navigating the Red Sea Route. This marks a gradual and cautious recovery after disruptions caused by regional tensions.
Last year, the situation around the Bab-el-Mandeb Strait, a prominent shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, reduced due to attacks by Yemen-based Houthi militants. Following the tensed situation and attacks by Houthi, the shippers were taking consignments through the Cape of Good Hope, resulting in delays of almost 14-20 days and increased freight costs.
Return of consignments to this crucial sea route, will now reduce transportation time significantly. The Red Sea Strait which is Bab el-Mandeb Strait handles 30% of container traffic and 12% of world trade. India’s merchandise trade with Europe heavily relies on this route, with about 80% passing through the Red Sea.
95% of the vessels has changed their route around Cape of Good Hope adding 4,000-6,000 nautical miles and 14-20 days to journeys. The gradual movement signals the recovery and ray of better export business.