Feeder Operators Capitalize on Red Sea Crisis to Boost Perishable Cargo Trade

Indian Reefer Cargo Stakeholders Leverage Disrupted Shipping Routes

The ongoing disruptions in global shipping routes due to the Red Sea crisis have opened a profitable opportunity for feeder operators targeting the perishable cargo sector. Indian reefer cargo stakeholders are strategically partnering with regional feeder lines, bypassing longer detours around the Cape of Good Hope in favor of quicker, albeit riskier, routes through the Red Sea and Mediterranean.

Feeder Lines Targeting India-Red Sea/Mediterranean Trades Amid Shipping Disruptions

A growing number of feeder lines have recently increased their involvement in India-Red Sea and Mediterranean trade routes, capitalizing on the market disruption caused by vessel reroutings. Despite the security risks associated with navigating the Red Sea region, operators like SeaLead, Emirates Shipping, KMTC, TS Line, Global Feeder, Unifeeder, CULines, and X-Press Feeders are positioning themselves to exploit this temporary window of opportunity.

Sources at Nhava Sheva, a major port in India, reveal that Non-Vessel Operating Common Carriers (NVOs) are increasingly teaming up with these niche short-haul operators to offer Red Sea sailings on both scheduled and ad-hoc bases. "They’re cashing in on a crisis," a Mumbai-based freight forwarder commented, referring to how NVOs are securing Indian cargo movements to and from Turkey via these routes.

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Indian Fresh Produce Shipments Benefit from Shorter Transit Times

One of the most notable examples of this shift is the arrival of premium Egyptian citrus fruits in India, which typically require swift transport due to their perishable nature. The cargo, imported by Mumbai-based IG International, was transported via a direct route from Port Said to Nhava Sheva in just 17 days. This transit time is significantly faster than the typical 30-40 days required when rerouted via southern Africa.

"The Egyptian citrus has always been synonymous with quality and flavor," said Tarun Arora, director of IG International. "And this marks the start of a fruitful season." The cargo, which was transported aboard the X-Press Altair, a mid-sized vessel operated by X-Press Feeders, showcases how quicker transit routes are becoming vital for the perishables sector.

Feeder Services to Meet Rising Demand Amid Ongoing Vessel Diversions

As feeder services continue to gain momentum, upcoming sailings from Nhava Sheva will include vessels such as the X-Press Mekong, part of the Red Sea-Gulf-India (RGI) service, as well as the ad-hoc X-Press Dhaulagiri. KR Tasman, deployed by CULines on a new IMR loop, is also expected to join the growing fleet of vessels servicing the Red Sea route.

Faster transits and service reliability are crucial to the perishables trade, which has faced significant supply chain disruptions in recent months. With mainliners continuing to reroute vessels due to the ongoing security situation in the region, feeder operators are stepping in to fill the gap, providing a vital lifeline to the perishable goods market.

As the Red Sea crisis unfolds, these feeder operators are continuing to adjust their services, offering more flexibility and faster solutions to shippers who need to ensure timely delivery of perishable cargo, further cementing their role in the logistics sector.

This guest article was written and edited in alignment with Worldcraft Logistics' editorial guidelines to offer valuable insights to our readers. The views expressed here may not necessarily reflect those of WCL.