The Indian shipping ministry has issued advisories in response to heightened tensions in the West Asian region, following a missile attack by Iran on Israel. These advisories focus on enhanced security protocols for ships entering Indian waters.
The measures include stricter reporting requirements for incoming vessels, mandatory security drills onboard ships, and an increased presence of the Indian Navy in strategic maritime regions. These regions encompass the Persian Gulf, the Strait of Hormuz, the Gulf of Oman, the Arabian Sea and the Red Sea, all considered critical shipping lanes.
The Strait of Hormuz, a vital chokepoint connecting the Persian Gulf to the Gulf of Oman, is a particular area of concern. Rerouting vessels via the Cape of Good Hope, an alternative route, is both time-consuming and expensive.
Additionally, the advisories outline communication protocols in case of security incidents. Ships are instructed to contact the nearest Indian Navy vessel or other international warships in the vicinity. Further, reporting mandates include informing the UK Maritime Trade Operations (UKMTO) and relevant international organisations.
To bolster preparedness, the advisories recommend comprehensive ship-shore security drills simulating various scenarios, including piracy and threats from loitering munitions. Furthermore, testing of the Ship Security Alert System (SSAS) is encouraged.
The ministry anticipates a potential rise in freight costs due to these heightened security measures. Rerouting ships, increased voyage times, deployment of armed guards on vessels and a rise in war risk premiums are all expected to contribute to cost inflation. Protection and indemnity (P&I) insurance costs are also predicted to increase.
This comes amidst pre-existing concerns over rising freight rates due to attacks by Yemen-based Houthi rebels on shipping in the Red Sea. The world container index by drewry currently sits at USD 2795 for a 40-foot container, reflecting a slight dip from the previous week but a significant 63 per cent increase year-on-year.
While Houthi attacks have shown signs of slowing down in recent weeks, the Ministry anticipates renewed tensions in the region to further escalate freight costs on specific routes.
