Latest news with #MiddleEast-bound
Hans India
6 hours ago
- Hans India
Middle East airspace closure throws Kerala airports into chaos, normalcy expected soon
Thiruvananthapuram: The sudden closure of airspace over parts of the Middle East from late Monday evening triggered widespread chaos at Kerala's four major international airports on Tuesday, with hundreds of passengers stranded due to numerous flight cancellations. Display boards at Thiruvananthapuram, Kochi, Kozhikode and Kannur airports showed long lists of cancelled and delayed flights, leaving travellers in a state of uncertainty. However, with reports emerging that the situation is beginning to normalise after the ceasefire between Israel and Iran was announced, many have heaved a sigh of relief as airlines began rescheduling affected journeys. Home to over a quarter-million Keralites, various Middle Eastern countries rely heavily on air connectivity with Kerala. Popular magician Gopinath Muthukad, who was at Doha airport on Monday night when the disruption occurred, shared his experience. He said, 'I was informed of the sudden closure after reaching the airport. Now I've been issued a boarding pass for Tuesday night. Things appear to be returning to normal in Qatar, and I've been told that, apart from some delays, flight operations should resume soon.' More than two dozen international flights from Kerala were cancelled from Monday night. A passenger heading to Saudi Arabia said he was offered an alternative route via Oman, which had not closed its airspace. 'I was told I could fly to Oman and take a connecting flight to Saudi Arabia. I'm now waiting for that option,' he said. Another passenger scheduled to fly to Qatar said, 'My flight was cancelled, but I've been rebooked for Wednesday or later this week.' At Kochi airport, a group of stranded passengers said airline staff had advised them to keep checking their phones for updates. 'Some of us who live nearby have gone home, but many are still waiting here at the airport,' they said. The disruption has not only impacted international travellers but also affected domestic passengers. Several Middle East-bound flights also have domestic legs, and the cancellations have left many such passengers stranded across India. Airlines, including Air India, IndiGo, and several Gulf-based carriers, were among those that cancelled flights.
Time of India
6 hours ago
- Business
- Time of India
Ceasefire in Words, Missiles in Air: Rising tensions between Israel and Iran threaten India's billion-dollar Middle East trade
Despite US President Donald Trump's announcement of a ceasefire deal between Israel and Iran, the two warring sides continue to trade deadly missiles targeting each other's cities. This has put the Indian trading community in a state of uncertainty regarding the fate of their shipments into the region, which is a market for the country. Traders say that with Iran now launching rockets—most recently the attack on the Al Udeid base in Qatar—the situation remains volatile and uncertain for them. 'Freight costs are going up—now by 20-25% for all major trading destinations. For the Gulf (Jebel Ali port of Dubai), a 40-ft container shipment, which was previously $50, now costs $550. And it's not just Dubai; this holds true for all neighbouring ports,' says Ghaziabad-based home textile exporter Ananat Srivastava , describing the acute toll on his Middle East-bound shipments in the wake of the widening Iran-Israel conflict. Even before the US bombed key Iranian nuclear sites, Srivastava, who is also Director of the Home Textile Exporters Association, says Indian traders were already facing disruptions. 'Lots of apparel and home textile products go to Israel. Transit time has increased by 30%, and freight rates are up by 50%. Vessel planning for containers has gone haywire. When the vessel will arrive, nobody knows. This applies to all routes, including Europe and the US, and holds particularly true in the case of the Middle East. Whatever schedule I get from the forwarder or vessel, it's now showing a delay of 2-3 weeks.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ödeme? Dieses simple Haushaltsmittel reduziert Flüssigkeit Venen Kompass Weiterlesen Undo According to Srivastava, Israel-bound shipments are facing highly erratic port scheduling. He notes that shipping lines are no longer able to provide reliable schedules. Another key point he highlights is that while freight costs have increased, insurance costs remain unchanged. The reason: war and war-related damages are not covered under any policy. Rajat Mehra, Co-convenor of the CII UP MSME Panel and Director at Rajat Chemicals Industry, affirms the increase in costs, noting that in addition to sky-high freight charges, he is also witnessing significant delays. 'A consignment that the importer had assured would be shipped to us last week is now reportedly delayed by another week as of this morning,' he says. Live Events The escalation of the war is already impacting shipping freight rates and insurance coverage for shipments, according to Sumit Jain, Managing Director of New Delhi-based Kanin Originals, an MSME manufacturing cotton garments. As things escalate further, the burden of increased supply chain costs will have to be borne by traders and end consumers, he cautions. 'A lot of India's exports move via Dubai's free zones, which serve as warehousing hubs for the Middle East, Africa, and GCC (Gulf Cooperation Council) nations. Traders catering to Gulf-bound markets are bound to suffer a blow due to this disruption. Any potential closure of the Strait of Hormuz will also cripple energy supply lines, particularly oil, used by Indian firms,' Jain adds. India's strategic trade ties with the region India's bilateral trade with the Gulf Cooperation Council (GCC) countries, Iran, and Israel accounts for a significant share of its global trade . In FY 2024-25, India-GCC bilateral trade reached $178.56 billion, accounting for 15.4% of India's total global trade. The UAE is India's top GCC trading partner, followed by Saudi Arabia, with both countries contributing the bulk of this trade through energy imports, gems and jewellery, machinery, electronics, and food products. The GCC, as a bloc, is also a major source of foreign direct investment into India. Trade with Iran, though diminished by sanctions, remains important. India was the third-largest importer of Iranian goods in 2023, with exports to Iran, mainly basmati rice, bananas, soya meal, Bengal gram, and tea, totalling $1.24 billion in FY 2025. Imports from Iran have sharply declined since 2019 due to US sanctions, but Iran remains a strategic partner, especially for agricultural exports and as a transit hub through the Chabahar Port. With Israel, India's trade has grown steadily, reaching $6.53 billion in FY 2024 (excluding defence), with India exporting $4.53 billion worth of goods (including chemicals, machinery, and agricultural products) and importing $2 billion in high-tech, electronics, and defence-related items. India is now Israel's second-largest trading partner in Asia and seventh globally. Shipping companies forecast cost increases With Iran's parliament approving the closure of the Strait of Hormuz, a new worry point has emerged for the Indian trading community. This is one of the world's most critical maritime chokepoints for global trade, especially for energy supplies. Approximately 20 million barrels of oil—about 20% of global petroleum liquids consumption—pass through the Strait every day, making it the single most important route for seaborne oil exports. About 60-65% of India's crude oil imports transit through Hormuz, making energy security the most vulnerable sector. Disruptions would drive up oil and LNG prices, increase shipping and insurance costs, and trigger inflation across the Indian economy. Sectors heavily reliant on Middle Eastern energy—refining, chemicals, fertilisers, and transport—would be directly hit. Additionally, agricultural exports to Iran (notably basmati rice, bananas, and tea) are already being affected, with large consignments stranded at ports due to payment and shipping disruptions. Overall, any escalation would cascade through India's trade with the entire West Asian region, impacting both energy and non-energy sectors. Hector Patel, Chief Operating Officer–Sea, at Jeena and Company, is of the view that oil shipments may need to be re-routed, and international shipping lanes could be severely disrupted if tensions rise. 'While only 2-3% of global container volumes pass through the Strait of Hormuz waterway, a direct container market impact would primarily affect the Middle East. This will affect the redirection of transshipment volumes, particularly impacting Dubai's Port of Jebel Ali, the busiest hub in the Gulf. This could cause congestion in alternative South Asian ports and elevate freight rates.' Jitendra Srivastava, CEO of Triton Logistics & Maritime, is of the view that the escalating Israel-Iran tensions are driving a sharp surge in marine insurance premiums and disrupting lifeline shipping routes, especially through the Strait of Hormuz. 'It can double insurance rates for a Rs 50 crore bulk cargo shipment from Rs 1.5 lakh to Rs 6.5 lakh when war risk cover is needed to transit through risk-prone zones such as the Red Sea. Regular marine premiums are 0.3% of cargo value, of which war risk is 0.1%. This rise in insurance costs, combined with greater security risk, is compelling freight rates to jump by 30–50% as shipping lines transfer costs to customers.' According to Srivastava, countries such as India, with extensive trade links with West Asia, are facing higher logistics costs and supply chain disruption risks. 'Exporters are now using alternative, longer routes to avoid risk zones, adding once more to transit time and cost.' Notably, ratings agency Crisil has cautioned that a prolonged or escalating conflict, especially if it disrupts energy supplies, could aggravate risks, raise inflation, and pressure margins in oil-dependent sectors. Energy-intensive sectors and those with exposure to global shipping and insurance costs should be monitored closely for any escalation or supply chain disruptions, it stated in its latest report.
Time of India
30-04-2025
- Business
- Time of India
Sky-high chaos: Pakistan's move forces Indian flights into Rs 307 crore turbulence per month
NEW DELHI: Indian airlines are staring at additional weekly operational expenses of approximately Rs 77 crore due to closure of Pakistan airspace, amid escalating tensions in the aftermath of the Pahalgam terror attack. The closure is forcing airlines to take longer alternative routes, increasing fuel costs and flight durations significantly. Based on the number of international flights from northern India and the extended flight time, news agency PTI reported that the monthly impact on operational costs could cross Rs 307 crore. According to a senior airline executive quoted by PTI, international flights to North America now require up to 1.5 hours of additional flying time, which can increase costs by Rs 29 lakh per flight, including fuel, landing, and parking charges due to unscheduled technical halts. For European routes, the extra flying time is also around 1.5 hours, with an added cost of roughly Rs 22.5 lakh per flight, while Middle East-bound flights are facing delays of up to 45 minutes, adding about Rs 5 lakh in extra operational expense per flight. Data from aviation analytics firm Cirium shows that Indian carriers operate more than 6,000 international flights monthly, with around 800 weekly flights originating from northern Indian cities such as Delhi, headed to destinations across North America, Europe, the UK, and the Middle East. Of these, around 1,900 flights per month are operated using narrow-body aircraft (A320s, A321s, B737s) to the Middle East. PTI's estimates suggest this alone could lead to an additional Rs 90 crore per month in costs. Long-haul flights using wide-body aircraft to Europe and North America are responsible for the remaining Rs 217 crore. Beyond fuel costs, airlines are also grappling with crew duty time limits, reduced aircraft availability, and payload challenges, making the disruption more complex. On April 25, IndiGo announced that around 50 of its international routes would be adjusted due to longer flight sectors. It also suspended operations to Almaty (from April 27 to May 7) and Tashkent (April 28 to May 7), stating that rerouting made these destinations unviable for its current fleet. Other carriers including Air India, Air India Express, SpiceJet, and Akasa Air have not yet publicly announced flight cancellations but are expected to face operational strain. Widebody operators like Air India and IndiGo (which leases B777s and B787s) are better positioned to absorb the impact than budget airlines running narrow-body fleets. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
