Ocean freight rates have skyrocketed to record highs due to the ongoing crisis in the Red Sea. The article in The Hindu Business Line highlights this surge alongside a surprising trend – growth in major ports despite private port dominance.
The disruption caused by attacks on ships in the Red Sea is forcing companies to reroute vessels, leading to longer journeys and significantly increased freight rates. This situation is further complicated by a global supply chain already strained by factors like the pandemic and the war in Ukraine.
The article explores an interesting detail – even amidst these challenges, major ports in India are experiencing growth. This is partly attributed to a strategic shift by shipping companies, choosing to call at larger, well-equipped ports due to the uncertainties surrounding the Red Sea. Additionally, private ports, while still dominant, may be facing congestion due to the increased traffic. This creates an opportunity for major ports to handle some of the overflow.
Source: The Hindu Business Line