Indian Export Consignments to Resuming Through Red Sea route

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.