New eastern route cuts down shipping time & costs, promises to boost India-Russia trade
In July this year, India – world’s third-largest consumer of crude oil with a high import dependency level of over 85 per cent – had surpassed China as the largest buyer of Russian oil.
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Midway through 2024, as India surpassed China to become the largest buyer of Russian oil, the operationalisation of a new sea route – the Eastern Maritime Corridor – is beginning to play an increasingly significant role in boosting commodity trade between the two countries, especially crude oil shipments to India.
The new eastern route from Chennai to Vladivostok is translating into savings on two counts: shipment times between the two countries and thereby transportation costs. Trading of commodities such as crude, coal and LNG have already commenced via the new eastern route since early this year, while others products including fertilisers and containerised cargo that warrant longer-term commitment from both parties are also now being shipped.
The Chennai-Vladivostok sea route covers a distance of about 5,600 nautical miles and is estimated to have reduced the time required to transport cargo between the Indian and Russian Ports of the Far East Region by up to 16 days. The time taken has come down to 24 days compared to over 40 days that it takes to transport goods to India from the west of Russia via Europe. This traditional trade route between Mumbai and St Petersburg in Russia spans a distance of 8,675 nautical miles, and the time taken for transportation is 40 days or more.
2024-12-16
By
Ravindra Kumar Tiwari
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