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The central government met representatives from shipping companies and exporters to understand the impact of the evolving situation in the Red Sea.
Sources in the government said that they were closely watching the unfolding situation in the Red Sea amid growing global concerns over attacks on several commercial ships in the region by suspected Houthi rebels. Sources told ANI that the cost of freight and insurance has risen due to ships being compelled to avoid the region and take a longer route which has increased the turnaround time of 14 more days. Further, according to sources, the cushion of a month's inventory currently available for imported items may face disruptions if the Red Sea conflict prolongs. At present, there is no shortage of containers, but a longer turnaround time of 14 days due to longer routes across Africa and European countries could be a concern. Export of goods to Europe, the US, and Latin America is taking longer time, increasing the cost of transport. Many consignments were being escorted by naval assets on the high seas following intervention by the Ministry of Defence (MoD). Reportedly, the Houthis are believed to have been armed and trained and there are fears that their attacks could escalate and fuel a wider regional conflict. (ANI)
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