Red Sea Crisis Drives Up Transit Times & Costs for Sanjivani Paranteral

Increased Transit Times
One of the major challenges we face is the increased transit time. Our products now take approximately 60-65 days to reach key markets like Peru, compared to 30 days before the crisis. This delay impacts our competitiveness, as products from China reach Peru in fewer days than ours. Additionally, this reduces the shelf life of our perishable pharmaceutical products. Although we offer advantages such as better product quality and no language barriers, which sets us apart from China, we still face significant challenges due to these delays.
Cost-Effectiveness and Global Competition
The slowdown in logistics has impacted the cost-effectiveness of our operations by increasing the cost of products, making it harder for manufacturers to compete globally, even when their goods meet international standards. Identifying and correcting these weak points is crucial for India to reach customers in diverse and remote geographies more efficiently.
Safety and Insurance Concerns
We have observed vessels from certain origin countries being targeted, so we try to determine which options are safer and choose accordingly. As a side effect of the crisis, insurance premiums have gone up. Whenever possible, we avoid the Red Sea route by opting to go east, using Chinese carriers.
Hybrid Transportation Solutions
To address the delays and capacity shortages caused by the crisis, we are increasingly exploring hybrid transportation solutions like SEA-LAND or SEA-AIR-LAND combinations. These typically cost 3-4 times more than ocean transport, making them less feasible for regular or bulk shipments. However, despite the significant expense, these hybrid solutions remain necessary for time-sensitive goods. By carefully managing these hybrid solutions, we aim to maintain reliable and cost-effective logistics operations.