Houthi rebels have announced a blockade in the Red Sea.
The Red Sea is also in discussion amid tensions and attacks between America and Iran. Yemen’s Houthi rebels have created havoc there. It is not hidden from anyone that Iran has open support for Houthi rebels. Houthi rebels have announced a blockade in the Red Sea. Two tankers carrying Saudi crude oil going to India and China have changed their route through the Red Sea. Now they have turned towards the Suez Canal. This development comes on the heels of Saudi Arabia’s announcement of a naval blockade of Yemen’s Houthi rebels.
If the Houthi rebels are successful, the sea route will be disrupted. This means there is a possibility that the movement of ships will be affected. If this happens, India will also be negatively affected because India has been importing and exporting a large amount from the Red Sea. The coast adjoining the Red Sea in Yemen is very important for India. Because if the tension that started again after the peace agreement continues for a long time, its importance will increase further. Let us understand with this excuse why and how important is Yemen’s coast adjacent to the Red Sea for India?
The Red Sea coast of Yemen is far away from India. Nevertheless, its impact can reach India’s economy, oil supply, trade and the pockets of common people. The main reason for this is the Bab-el-Mandeb Strait. This narrow sea route is located near Yemen. This route connects the Red Sea to the Gulf of Aden and then the Arabian Sea. Many ships connecting India to Europe, West Asia and Africa pass through this area, so increasing tension on the coast of Yemen is not just regional news. This is a matter of strategic and economic concern for India.
Bab-el-Mandeb is an important gateway to the sea
Bab-el-Mandeb means Gate of Tears. This name is believed to be related to the ancient difficulties of sea travel. Today it is counted among the most important maritime choke-points in the world. A choke-point is a narrow passage through which a large amount of maritime trade passes. If there is a threat of attack, blockade or war, the movement of ships is affected. Yemen is on the eastern bank of this waterway. On the other hand there are African countries like Djibouti and Eritrea. That is why instability in Yemen’s coastal areas directly affects the security of the Red Sea. In the north the Red Sea connects to the Suez Canal. Through the Suez Canal, ships reach the Mediterranean Sea and then Europe. This is the shortest sea route between Asia and Europe.
Route of Bab-el Mandeb.
India’s fastest way to trade
A lot of goods going from India to Europe are sent through the Red Sea and Suez Canal. This includes textiles, medicines, machinery, auto parts, chemicals, engineering products and electronic goods. Since this route is short, the travel time remains less. Uses less fuel. Costs of companies also remain controlled. If ships cannot pass through the Red Sea, they may have to go via the Cape of Good Hope, the southern tip of Africa. This is a long journey. Due to this the journey may extend by several days. More time means more fuel. Expensive freight. This means increasing costs for Indian exporters. This may have a greater impact on small and medium exporters of India. There is also a risk of the order being canceled or being fined if the goods do not arrive on time.
Impact on oil and gas supply
India buys crude oil from abroad for its energy needs. West Asia is one of the important energy supplier regions of India. As tensions increase in the Red Sea and the Bab-el-Mandeb region, the movement of ships carrying oil becomes expensive and risky. Although not all of India’s oil imports come through this route, the sector can influence global energy market prices. As the fear of disruption in sea routes increases, there may be pressure on international oil prices, insurance charges and ship fares. That means the crisis off the Yemen coast can become an indirect cause of inflation in India.
As tensions increase in the Red Sea, the movement of ships becomes expensive. Photo: AP/PTI
Not just oil, but also essential goods
Not only oil comes and goes through the Red Sea route. Containers, food grains, fertilizers, chemicals, machine parts and consumer goods also pass through this route. Many industries in India are dependent on imported raw materials. These include pharma, electronics, automobile, chemical and textile industries. If ships arrive late, production plans may be affected. Many companies work on Just in Time model, that is, goods are brought on time as per requirement. Such supply chains can be broken due to maritime blockage.
Why do insurance and freight increases?
Shipping companies may consider maritime areas prone to war or attack as high-risk zones. In such a situation, ship insurance becomes expensive. The cost of crew security also increases. Many companies abandon the Red Sea route to avoid risk. They take the long route down Africa. This keeps ships, containers and fuel busy for longer periods of time. The result is that shipping companies increase freight charges. This additional cost ultimately reaches the importer, exporter and consumer. In previous Red Sea crises, the world has seen that changing sea routes can put pressure on delivery times and container rates, so for India, security off the Yemen coast is not just a military issue. This is also a supply chain issue.
Not only oil comes and goes through the Red Sea route, many important things are imported and exported through this route.
Direct connection with India’s maritime security
India is a major country of the Indian Ocean. It has a long coastline. A large part of foreign trade is done by sea route. Therefore, the stability of the Indian Ocean, Arabian Sea, Gulf of Aden and Red Sea is linked to India’s national interest. The Indian Navy has long played a role in anti-piracy and security operations around the Gulf of Aden. The safety of Indian ships and sailors also remains a big priority. If tensions increase in the Red Sea, India may have to increase surveillance of its merchant ships. Sharing maritime information, coordination with friendly countries and providing security advice to ships also becomes necessary.
Challenge of balance in West Asia
India has important relations with Saudi Arabia, United Arab Emirates, Iran, Egypt and African countries. India does not aim to be a part of any regional conflict. But it also has to protect its energy and business interests. The Houthi group operating in Yemen and concerns over the safety of ships in the Red Sea have made this balance more difficult. Recent reports have revealed that the Houthis have warned of a maritime blockade against Saudi Arabia. The primary need for India is that the sea routes remain open. International law must be followed. Civilian ships should remain safe and any tension should have minimal impact on energy and trade supplies.
What options does India have?
India has some options. He buys oil from different countries. It also has strategic petroleum reserves. Indian companies can explore alternative sea routes and suppliers. Yet options have their costs. The long way will always be expensive. Alternative sources will not always be immediately available in sufficient quantities. That is why the best option is to protect sea routes. India will have to continue strengthening its naval capability, maritime surveillance, port infrastructure and strategic partnerships.
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