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
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement