Red Sea crisis may nudge US buyers to source goods from East Asia

Indian exporters apprehend that unless the hostilities in the Red Sea end quickly, the buyers in the United States (US) will prefer East Asian sources

Last week, the United Nations Security Council called for cessation of attacks on commercial vessels in the Red Sea. Within hours, the American and British forces launched aerial attacks on the military positions of the Houthi rebels in Yemen. It is far from clear whether these developments will quickly lead to restoring normalcy in the Red Sea.

What is clear, however, is that the disruption of traffic through the Suez Canal has resulted in increase of freight rates by at least $1,500 per container and longer transit times by 12-15 days for cargo going from India to Europe and