Indian Shipping Industry and Oil Firms Urge Government for Naval Protection in Hormuz Strait
In response to escalating tensions in West Asia, a prominent shipping lobby group and a major state-run oil company formally requested security escorts for vessels navigating the critical Strait of Hormuz on Friday. This strategic channel is vital for the global supply of oil and gas from the region. The stakeholders also recommended utilizing alternative ports, such as Yanbu in Saudi Arabia, to maintain an uninterrupted flow of energy and other essential commodities from the crisis-affected area.
High-Level Meeting Addresses Mounting Concerns
During a high-level inter-ministerial meeting chaired by Shipping Secretary Vijay Kumar, multiple companies urged the government to instruct ports to waive demurrage charges and other levies, including fees for detention and plug-in services for stranded cargo and containers. Hindustan Petroleum Corporation Limited (HPCL), which participated in the meeting, reported that its vessels loaded with crude oil and liquefied natural gas (LNG) are currently stuck in the Persian Gulf, with three additional empty vessels awaiting entry.
Industry Bodies Advocate for Enhanced Security Measures
The Indian Shipowners' Association (INSA) joined the call for vessel security, highlighting the Indian Navy's successful Operation Sankalp in 2024, which protected shipping lines from piracy, hijacking, and Houthi attacks in the Red Sea. The industry body has reportedly raised this issue directly with the Indian Navy. Officials noted that the shipping secretary indicated any action by the Navy and the Ministry of External Affairs would be contingent on the evolving geopolitical situation.
Proposals to Boost Shipping Availability and Export Logistics
A representative from Reliance Industries proposed relaxing age norms for vessels docking at Indian ports as part of a strategy to increase ship availability, according to a source familiar with the discussions. Meanwhile, the Agricultural and Processed Food Products Export Development Authority (APEDA) expressed concerns about risks to basmati rice and fruit and vegetable exports to the region. APEDA is in discussions with logistics firm DP World to transport fruits, particularly bananas, to ports near Dubai for subsequent road shipment. Approximately 3,000 containers of basmati rice and 1,000 containers of bananas and grapes are currently en route to the region.
Alternative Transport Routes Suggested
The Association of Multimodal Transport Operators of India suggested that fruits could be routed through Sharjah and Khor Fakkan ports, from where they could be distributed to other cities. This proposal aims to circumvent potential disruptions in the Strait of Hormuz and ensure the continuity of trade flows amidst the ongoing regional instability.
