Red Sea crisis: Panel to meet on Feb 8 to discuss issues

NEW DELHI: A high-level inter-ministerial committee will again meet on February 8 to discuss the way forward on the trade front in the wake of ongoing problems in the Red Sea, an official said.

Earlier the panel held its meeting on the issue on January 17 here. Senior officials from five ministries - external affairs, defence, shipping, finance (department of financial services), and commerce - are expected to participate in the deliberations. “In the February 8 meeting, the officers are expected to talk about steps being taken by them to help the exporting community deal with this crisis,’’ the official said .These meetings are convened by the commerce ministry.

In the last meeting, the commerce ministry had asked the Department of Financial Services (DFS) to monitor and maintain credit flow to exporters, who are facing freight cost troubles due to the Red Sea crisis. Meanwhile, the finance ministry on Monday asked banks and insurance companies to expeditiously resolve issues of exporters and facilitate overseas trade.

The situation around the Bab-el-Mandeb Strait, a crucial shipping route for traders connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to attacks by Yemen-based Houthi militants in December 2023.

Due to this, the shipping costs have jumped and the consignments are taking more time to reach Europe and the US as the ships are taking the Cape of Good Hope route, encircling Africa. Longer routes are resulting in delays of about 14-20 days and also higher freight and insurance costs.