The group will meet again soon. The meeting, attended by the Ministries of Commerce, Navy, Defense and Foreign Affairs, showed that so far the trade volume of the main ports has not decreased.
An inter-ministerial meeting on the Red Sea crisis on Wednesday asked the Department of Financial Services (DFS) of the Ministry of Finance to monitor the credit needs of exporters, a senior official said on Wednesday. exports and ensure the maintenance of credit flows for them.
“We have asked DFS to monitor the bank credit amount and provide bank credit relief,” the official said. The ministry was also asked to monitor transport insurance costs, the official said after the meeting.
The group will meet again soon. The meeting, attended by the Ministries of Commerce, Navy, Defense and Foreign Affairs, showed that so far the trade volume of the main ports has not decreased.
The Ministry of Transport is tasked with monitoring volumes, which have so far remained stable. “For now we are ensuring that volumes are not affected.” The Ministry of Defense informed during the meeting that it has improved surveillance capabilities in the Arabian Sea and introduced more mechanisms for smooth navigation.
The Ministry of Defense also participated in the discussions as 10 Indian warships along with maritime commandos were deployed to the area. The Ministry of Foreign Affairs is negotiating with affected countries to quickly find a credible solution to the crisis.
The official said costs and turnaround times for shipments have increased because two shipping companies, including Maersk, have suspended services, but volumes have not been affected. He said so far there has only been a time and cost impact, nothing else.
Faced with the rapid escalation of the situation in the region, transport fares on certain routes have increased sixfold.
Exporters fear the consequences could be significant if the situation does not return to normal. The government may need to consider other routes.
The ministry has also spoken to exporters. In December, no impact of the crisis was recorded on overall export figures. Most shipments to Europe and the United States pass through the Cape of Good Hope.
For its part, the Ministry of Commerce has asked the Export Credit Guarantee Corporation (ECGC) not to increase fees for credit insurance and other related services. Insurance enables banks to provide adequate export credit facilities to exporters in a timely manner. A strategy group has also been set up in the Ministry of Commerce, at the level of additional secretary, to closely monitor the situation. Since mid-November, Houthi rebels, who control much of Yemen, have targeted commercial ships crossing the lower Red Sea to show solidarity with Gaza and protest the deployment of its forces. Israel in the region. In response, the United States and the United Kingdom
According to various reports, the conflict in the Red Sea resulted in a 40-60% increase in shipping costs, a 15-20% increase in insurance premiums, and delays of up to 20 days as some ships left the Suez Canal.
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