Shipping turmoil squeezes Indian seafood margins despite rupee depreciation

India’s $13.1 billion seafood industry is reeling from the dual disruption of the Strait of Hormuz and the Red Sea, according to experts. Mr K. N. Raghavan, Secretary General of the Seafood Exporters Association of India (SEAI), stated that while direct exposure to West Asia is limited, the major impact is on logistics. Shipping lines are bypassing the Red Sea for the Cape of Good Hope, leading to surging freight costs, prolonged container turnaround times and spiked insurance premiums. The financial toll is significant. Mr Raghavan warned that if disruptions persist for three months, total losses could escalate to `1,500 crore. While a weakening rupee has provided a slight cushion for margins, Mr Divya Kumar Gulati, Chairman of CLFMA, noted that shipment delays and weakened buyer confidence remain critical threats to the sector, according to a report.

Please visit our youtube channel https://www.youtube.com/@ikargos2719 for fortnightly logistics news analysis and more!