Two-wheeler exports in troubled waters

FREIGHT RATES AND shipment time to Latin America and Africa key markets for Indian twowheeler makers such as Bajaj Auto and TVS Motor Company - have doubled due to the shipping crisis in the Red Sea.

- SWARAJ BAGGONKAR

• RED SEA CRISIS DOUBLES SHIPPING RATES, TIME

Bajaj Auto, India's biggest twoand three-wheeler exporter, has been feeling the heat for the last couple of months. Executive director Rakesh Sharma said, "The Red Sea imbroglio has caused some delays of about three weeks to Latin America and parts of Africa, and we have seen freight rates double to many destinations." 

According to KN Radhakrishnan, director and CEO, TVS Motor Company, the impact of the Red Sea crisis is just beginning to be felt. "There is some initial feedback on lack of container availability and some pricing increases. We have to watch these developments very closely. However, it is too early and there will be some delays in container availability before things settle down." 

There has been a series of attacks on merchant ships in the Red Sea by Yemeni Houthi rebels - a fallout of the Israel-Hamas conflict. On Wednesday, the United Nations General Assembly warned the crisis could trigger another World War.