Ambassador Saad highlights that "naval incidents in the Indian Ocean affect shipping lanes" and that the conflict is no longer a distant theater but is occurring in India's "proximate neighbourhood." When naval warfare (submarine strikes) occurs in critical trade routes, insurance premiums for vessels skyrocket and routes become longer to avoid conflict zones. This reduces effective supply of ships and drives up freight rates for both containers (ZIM) and oil tankers (NAT). Long shipping logistics companies that benefit from higher day-rates caused by geopolitical disruption. Naval escorts successfully securing lanes quickly, reducing the risk premium.