Despite the ongoing crisis in the Red Sea, Indian garment and leather exporters have successfully ensured that their products will reach the shelves of US and European markets in time for the upcoming Christmas and New Year festivities.
To mitigate the potential delays caused by the Suez Canal disruptions, exporters adopted proactive measures, shipping their goods two months earlier than usual. This strategic move allowed them to circumvent the increased transit times and delays associated with alternative routes.
Last year, the Red Sea crisis significantly impacted Indian exporters as ships avoided the Suez Canal due to Houthi attacks, resulting in longer voyage times via the Cape of Good Hope. This disruption led to delays in reaching key markets like the US and Europe.
To ensure timely delivery this year, exporters like Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council, began shipping their goods in June and July, instead of the typical August timeline. This proactive approach has alleviated concerns about meeting the crucial winter season deadlines.
However, the Red Sea crisis has also highlighted the need for exporters to be prepared for potential disruptions. Israr Ahmed of Farida Group and Sivaramakrishnan Ganapathi of Gokaldas Exports emphasised the importance of factoring in extended transit times and avoiding last-minute shipments.
Raja M Shanmugham, former president of the Tiruppur Exporters Association, called upon the government to provide support to MSMEs affected by geopolitical issues. He suggested measures like emergency credit lines to help businesses navigate the challenges posed by disruptions in the supply chain.
By successfully navigating the Red Sea crisis, Indian exporters have demonstrated their resilience and ability to adapt to changing geopolitical landscapes. Their proactive measures have ensured that the festive season will not be marred by shortages of Indian-made garments and leather products in the global market.
