Indian Textile & Apparel Export Shipments Freight Spikes 40%

The attack on merchant ships by Houthi rebel attacks in the Red Sea has spiked freight rates by 40 percent, with expectations of them going up and impacting Indian textile and garment export costs.

Red sea is one of the busiest sea routes that connect Asia and Europe, but the attacks have forced ships to take the route around Africa adding an extra 6,000 miles and an additional 15 days in transit time.

“This has resulted in steep hikes in freight rates and insurance premiums,” Badresh Dodhia, Chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) said.

Dodhia requested the Government to support the textile and apparel exporters with higher duty drawback on various schemes to better manage the current situation.

Practically, most of India’s textile and clothing export shipments pass through the Suez Canal, and freight rates which had stabilised in recent months, after seeing a spike during the Corona Virus period.

There is fear among Indian textile and garment exporters that the spike in freight rates witnessed during the pandemic, may repeat again.