New trade route to Israel involving Mundra port

What’s in today’s article?

•  Why in news?
• What is Red Sea?
• Who are Houthis?
• News Summary: New trade route to Israel involving Mundra port
• What is happening in the Red Sea?
• What is the new route?
• What are the benefits, costs of the new route?

Why in news?

• As Houthis continue to attack Israel-linked ships in the Red Sea, Israeli transport minister recently announced an alternative route for trade, involving the Mundra port in Gujarat.

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What is Red Sea?

• About
  • Red Sea is narrow strip of water extending southeastward from Suez, Egypt, to the Bab el-Mandeb Strait.
  • Basically, it is a narrow inland sea between the Arabian Peninsula and Africa.
    • The Red Sea separates the coasts of Egypt, Sudan, and Eritrea from those of Saudi Arabia and Yemen.
  • The Gulf of Aqaba, a north eastern extension of the sea, reaches southern Israel and southwestern Jordan.
• Significance
  • The Red Sea contains some of the world’s hottest and saltiest seawater.
  • It is one of the most heavily travelled waterways in the world, carrying maritime traffic between Europe and Asia.
• Significance for India
  • Freight rates for Indian shipments headed to Europe and Africa could surge as much as 25-30 per cent if there is disruption along this route.
    • For India, the Red Sea trade route is the shortest trade route for ships moving from Asia to Europe.
    • India is heavily reliant on the Bab-el-Mandeb Strait for its crude oil, LNG imports and trade with parts of West Asia, Africa, and Europe.
  • This route is vital for 30 per cent of global container traffic.

Who are Houthis?

• About
  • The Houthis are a Shiite Muslim sect and political and military organization that emerged in Yemen (which is predominantly Sunni) in the 1990s.
    • Named after the Houthi tribe, they are Zaydi Shias.
    • Zayadism is a sub-sect of Shia Islam and it believes in following the lineage of the Prophet Muhammad’s family, as the political leader of the state.
  • The Houthis are also known as Ansar Allah, which translates to “Supporters of God”.
• Involvement in civil war of Yemen
  • The Houthis are one side of the Yemeni civil war that has raged for nearly a decade.
  • Yemen’s civil war began in 2014 when Houthi insurgents took control of Yemen’s capital and largest city, Sana’a.
  • By early 2015, Saudi Arabia, along with other Gulf states and with U.S. support, was launching airstrikes against the Houthis, who are backed by Iran.
  • A ceasefire was finally signed in 2022. It lapsed after six months but the warring parties haven’t returned to full-scale conflict.
• Houthis attacking Red Sea ships
  • The Iran-backed Houthi rebels of Yemen have been attacking ships in the Red Sea in response to Israel’s military campaign in Gaza.
  • The Houthis support Hamas, and vowed on November 19 to target vessels they believe are heading to and from Israel.

News Summary: New trade route to Israel involving Mundra port

What is happening in the Red Sea?

• Yemen’s Houthi rebels have been attacking ships linked to Israel in the Red Sea, in solidarity with Gaza.
• This has disrupted global trade, some 12% of which passes through the Red Sea.
• To avoid the danger zone, ships are going all the way to the south of Africa and crossing the Cape of Good Hope, increasing both costs and the time taken.
• In this scenario, Israel has been looking for ways to carry out trade bypassing the Red Sea.

What is the new route?

• Under this, goods would move:
  • from Mundra to ports in the UAE, such as Dubai’s Jebel Ali Port, by sea, and
  • then via land through Saudi Arabia and Jordan to Israel.
    • Land corridor became feasible due to signing of the Abraham Accords (aimed at normalising ties between Israel and some Arab states) in 2020.
• A major part of the land transport will be carried out on trucks.
• A similar route might be used in the India Middle East Europe Economic Corridor (IMEC) too.
  • The ambitious project aims to link India to Europe via the Middle East, but its final shape is yet to be decided and the Gaza war has thrown a spanner in its progress.

What are the benefits, costs of the new route?

• The land route will significantly cut travel time and costs for Israel, and will generate revenue for Saudi Arabia and Jordan in terms of transport fee and duties.
• However, trucks can carry far fewer goods than a ship can, and to that extent, trade will be limited.
• Also, the route depends on Israel maintaining friendly ties with the two countries, in a rapidly fluctuating situation in the Middle East.

Q1) What is Cape of Good Hope?

The Cape of Good Hope is a rocky headland on the Atlantic coast of the Cape Peninsula in South Africa. It’s located at the southern tip of the Cape Peninsula, which is also home to Cape Town, the legislative capital of South Africa.

Q2) What is strait?

A strait is a landform that connects two bodies of water or two seas. Straits are often important transportation routes because they allow ships to pass from one body of water to another.

Source: To bypass Red Sea, new trade route to Israel involving Mundra port: How this will work | The Hindu | Indian Express