Red Sea instability threatens Cochin Port’s cruise season and revenue

   October 7, 2024 ,   Accidents

The ongoing Red Sea crisis has compelled several shipping lines to cancel voyages, avoiding the increased time and costs associated with rerouting around Africa. Attacks by Houthi militants in the Bab al-Mandab Strait, which connects the Indian Ocean to the Suez Canal, have forced liners operating between Europe and Asia to take the longer route around the Cape of Good Hope.

As a result, Cochin Port has suffered significant cancellations. In the previous season, which ended in April, 10 vessels called off their scheduled visits, dampening hopes of capitalizing on the growing popularity of cruise tourism. The prolonged geopolitical unrest in the Red Sea continues to disrupt the cruise industry, with more cancellations expected. According to a shipping agency, 10 of the 22 cruise ships they had booked to call at Cochin Port between September and April-May of next year have already cancelled, including major cruise lines.

This situation poses a serious threat to Cochin Port's dedicated cruise terminal, which had a successful year in 2019-2020, receiving 44 cruise calls and handling 100,000+ international passengers and crew. The terminal was poised to expand, potentially home-porting vessels destined for the Maldives, Colombo, and Southeast Asia. However, with a second consecutive season of cancellations looming, the port's ambitions are at risk.

The cancellations are not limited to Cochin Port. A leading travel agent in Kochi reported that several cruise lines, particularly those owned by U.S. companies, have cancelled visits to Indian ports and the Gulf region due to concerns over the safety of Jewish crew members and passengers amid the Red Sea conflict. This has resulted in the cancellation of overland tours to Delhi, Agra, and Jaipur between March and May 2025, leading to an estimated loss of INR 1 crore (~US$119,000) in a single billing.

These cancellations also affect other stakeholders, including shipping firms, guides, tour operators, and taxi services, as the cruise season typically brings 40 days of bonus business. The average foreign tourist spend, estimated at US$150-250, will be lost.