Red Sea Crisis - A Matter of serious Concern - Chairman, SRTEPC

Mumbai: "The deteriorating situation in the Red Sea is a matter of serious concern to the exporters of Textiles & Clothing" said Shri Bhadresh Dodhia, Chairman of SRTEPC (The Synthetic & Rayon Textiles Export Promotion Council).

Since the last few days cargo ships passing through the Red Sea are being attacked by militants. Red sea is one of the busiest trade routes that connects Europe and Asia through the Suez Canal.

As a result of the attacks, Ships are reportedly taking a 6000 nautical miles detour around Africa which means an additional 15 days transit time that is causing steep increase in freight rates and insurance premium.

Freight rates to European Ports from India have already increased by 40% with a strong possibility of further increase which will increase Shipping costs for exporters of Textiles & Clothing,” said Shri Bhadresh Dodhia.

Majority of shipments of Textiles & Clothing pass through the Suez Canal that connects the Red Sea and the Mediterranean Sea.

The Chairman, SRTEPC, pointed out that freight rates have stabilized in recent times after witnessing steep increase in rates during Covid 19 and the current crisis in the Red Sea is once again resulting into increase in the freight rates which is not good for the exporters.

Shri Bhadresh Dodhia, expressed his concern that if the crisis is prolonged and not contained quickly, it will not only have an adverse impact on exports from India but will severely disrupt the global supply chain and hurt the world economy.

The Chairman, SRTEPC, urged the Government to provide some support to the exporters of Textiles & Clothing such as increase in the Duty Drawback, RoSCTL and RoDTEP rates to overcome the situation and to enable them to survive and sustain in exports.