2 weeks ago

India urged to boost shipping capacity, naval protection: GTRI

India urged to boost shipping capacity, naval protection: GTRI
India must strengthen shipping capacity, naval protection amid growing chokepoints: GTRI · thehindubusinessline.com

Ships carry things like clothes, rice, spices and machines from one country to another.

Many of India's trade ships travel through a water path called the Red Sea to reach Europe.

Since November 2023, some people called Houthis have been attacking commercial cargo ships there.

Because it is dangerous, many ships now take a much longer route around Africa.

This makes trips take about two extra weeks and costs a lot more money.

The problem has now lasted 1,000 days, which is almost three years.

A smart research group called GTRI says India should get ready for this to continue.

They suggest India needs more ships, better protection from its navy, and other trade routes.

Small Indian businesses are hurt the most because they cannot afford the higher costs.

GTRI believes the shipping problem could last into 2027.

Key facts

Think tank
Global Trade Research Initiative (GTRI)
Crisis milestone
1,000 days on August 15, 2026
Crisis began
November 2023, with Houthi attacks on cargo ships
Suez Canal traffic
60-70% below pre-crisis levels
Freight rates
25-40% above normal; 200-400% higher at worst on some India-Europe and India-US routes
Global capacity absorbed
5-7% of container capacity diverted around Africa
India's trade exposure
About 50% of exports and 30% of imports via the affected corridor
Added journey time
10-14 days on many voyages; two-route system could continue into 2027

Quotes

Ajay Srivastava

Founder of the GTRI think tank

“At the worst points of the crisis, freight rates on some India–Europe and India–US routes increased by 200-400 per cent. Longer voyages raised fuel, freight, insurance and inventory costs. They also delayed payments and blocked exporters' working capital for additional weeks.”
thehindubusinessline.com
“As shipping chokepoints are growing, India must treat maritime insecurity as a continuing trade risk and strengthen domestic shipping capacity, trade finance, naval protection and alternative transport corridors.”
thehindubusinessline.com

Sources

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