Hormuz shut, shipping services through other routes to West Asia up 2x

Key Takeaways

• NEW DELHI: Shipping services from India to alternative West Asian ports have more than doubled since conflict broke out in the region, severely impacting the movement of vessels through the Strait of Hormuz.
• The number of shipping services operating east of Hormuz and through the Red Sea rose from 127 in Feb to 257 in April and 245 in May, as per govt data.The shipping ministry said due to the conflict, shipping services west of Hormuz have become negligible, but there has been a significant increase in services east of Hormuz and in the Red Sea, underscoring the resilience of Indian maritime trade and sustained confidence among shipping stakeholders.Amid focus on finding alternate routes for shipping, a fertiliser department official confirmed that the process to evacuate ships loaded with fertiliser stuck west of Hormuz by road to Yanbu Port in Saudi Arabia and then by ships to Indian ports has started.
• TOI on Friday had first reported that the govt was looking at the option to evacuate India-bound fertiliser stranded in the Persian Gulf — to transport it by road from its current locations — after the ships dock at Yanbu Port and from there by ships to Indian ports.“The bulk cargo has to be transported by road from the ports and production facilities along the Persian Gulf to Yanbu.
• It will add to the cost.
• But the suppliers are taking this route since there is no immediate end to the conflict,” an official said.Meanwhile, ratings agency Crisil said the recent increase in petrol and diesel prices is likely to add to inflationary pressures in the coming months by raising transportation and manufacturing costs and could push up both food and core inflation if crude oil prices remain elevated.Retail petrol and diesel prices have risen by Rs 7.5 per litre since May 15, and further increases are possible as state-run oil marketing companies continue to narrow their losses on fuel sales.