Freight costs, including surcharges, have increased by over 500% amid the Red Sea crisis as shipping companies were forced to take the longer route via Cape of Good Hope, according to the Federation of Indian Export Organisations. "In the last few days, the situation has deteriorated," Chief Executive Officer of FIEO Ajay Sahai told NDTV Profit in an interview on Friday. "It is definitely a huge setback to the entire EXIM (export-import) trade." Through this route, India exports to the bordering countries of North Africa and the Middle East, Europe and the east coast of the US. Commodities like perishables will be the worst affected by taking the longer route, said Sahai, director general of FIEO.

Source: The North Africa Journal January 05, 2024 17:12 UTC