+
Red Sea Crisis disrupts tyre industry's supply chain
ECONOMY & POLICY

Red Sea Crisis disrupts tyre industry's supply chain

The impact of the Red Sea disruption is being felt in the Tyre Industry in India, affecting both transit times and freight rates. This is adversely affecting both tyre exports and the import of raw materials. Rajiv Budhraja, the Director General of the Automotive Tyre Manufacturers? Association (ATMA), mentioned that the freight rates from India to Rotterdam have increased by 3-4 times, and transit times have extended by 14 days due to ships being diverted through the Cape of Good Hope.

Regarding the movement from India to the US, Budhraja stated that there is no observed impact on transit times to the West coast, but there is an increase of 8-10 days to the East coast. Freight rates have doubled to the West coast, and there has been a 40% surge in rates to the East coast. Container availability has also been affected to some extent, although not to the extent of disrupting operations, he added.

Budhraja highlighted the significance of the Red Sea as a crucial channel for shipping to the US East Coast, Europe, West Asia, East Asia, and Africa from India.

Rajiv Tharian, who works with Southland Rubber Group, a major processor and importer of natural rubber to the Indian market, shared that the freight rates from Asia to Europe have increased by 300%, Asia to the US by about 200%, and freights for various routes, including Africa to Asia, have gone up by around 100%.

Furthermore, there is a severe shortage of containers, and the increased circulation time for boxes during voyages is causing significant delays in planned shipments from all locations. This emerging situation has prompted many tyre companies, especially in the US and Europe, to aggressively purchase for nearby shipments and increase their buffer stock of raw materials, including natural rubber, due to the risk of delays in shipping in the coming weeks and months.

The impact of the Red Sea disruption is being felt in the Tyre Industry in India, affecting both transit times and freight rates. This is adversely affecting both tyre exports and the import of raw materials. Rajiv Budhraja, the Director General of the Automotive Tyre Manufacturers? Association (ATMA), mentioned that the freight rates from India to Rotterdam have increased by 3-4 times, and transit times have extended by 14 days due to ships being diverted through the Cape of Good Hope. Regarding the movement from India to the US, Budhraja stated that there is no observed impact on transit times to the West coast, but there is an increase of 8-10 days to the East coast. Freight rates have doubled to the West coast, and there has been a 40% surge in rates to the East coast. Container availability has also been affected to some extent, although not to the extent of disrupting operations, he added. Budhraja highlighted the significance of the Red Sea as a crucial channel for shipping to the US East Coast, Europe, West Asia, East Asia, and Africa from India. Rajiv Tharian, who works with Southland Rubber Group, a major processor and importer of natural rubber to the Indian market, shared that the freight rates from Asia to Europe have increased by 300%, Asia to the US by about 200%, and freights for various routes, including Africa to Asia, have gone up by around 100%. Furthermore, there is a severe shortage of containers, and the increased circulation time for boxes during voyages is causing significant delays in planned shipments from all locations. This emerging situation has prompted many tyre companies, especially in the US and Europe, to aggressively purchase for nearby shipments and increase their buffer stock of raw materials, including natural rubber, due to the risk of delays in shipping in the coming weeks and months.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code