Arabian Sea likely to become 'high risk area' again, says PortsMin

Wrote to MEA, DefMin; traders may have to shell out higher freight, insurance costs

Amid rising Houthi attacks on merchant vessels in the Red Sea and Somali piracy in the Arabian Sea, the Ministry of Ports, Shipping and Waterways expressed concerns about the possibility of the Western Indian Ocean being re-established as a “high-risk area”, Business Standard has learnt.

A high-risk area is determined by the global shipping industry through its associations and declared for information for all maritime stakeholders in the global supply chain so that adequate security protocols can be put in place on those trade routes.

A high-risk area typically entails cost escalations for traders in the form of higher freight