The rise of Somali pirates in the Red Sea is expected to impact India's export-import business. Here are the key points summarising the content:
1. The hijacking of a merchant ship by Somali pirates has raised concerns about their return to international sea routes.
2. Precautionary measures to avoid pirate encounters may increase freight costs by 30-40% and add 12-14 days of sailing time, impacting prices.
3. This piracy threat adds complexity and cost to international trade for Indian businesses, with prices of goods likely to increase.
4. The Red Sea route is crucial for oil movement, and disruptions or longer routes due to piracy may lead to higher energy prices.
5. Yemen's Houthi group has also attacked commercial ships, prompting shipping companies to reroute via the Cape of Good Hope.
6. Products like crude oil, petroleum, palm oil, machinery, vehicles, pharmaceuticals, and chemicals are likely to be affected.
7. Countries around the Red Sea, including Saudi Arabia, Egypt, Jordan, Ethiopia, Israel, and Eritrea, will face longer sailing times and potential impacts on exports to Europe, Africa, and the Americas.