4 January 2024 12:51 pm Views - 6084
The decision comes amidst rising concerns among international shipping companies regarding attacks by Iranian-backed Houthi militants in the Red Sea.
The Houthis claim to be retaliating against Israel's military campaign in support of Hamas.
This ongoing disruption in the Red Sea has resulted in increased freight costs and delayed delivery times.
"Shipping has been disrupted due to Houthi attacks on ships in the Red Sea area. To counter this, if ships reroute around South Africa instead of navigating the Red Sea, it will lead to increased cargo costs," the President said addressing the 'Shilpa Abhimani 2023' held at the Sirimavo Bandaranaike Memorial Exhibition Centre in Colombo.