New Delhi, March 2 -- Europe-bound shipments from India are turning costlier and slower, as global shipping lines avoid the volatile Persian Gulf and Red Sea corridors, forcing vessels to take the longer route around the Cape of Good Hope at the southern tip of South Africa amid escalating US-Iran tensions.

Security concerns around the Strait of Hormuz and the Red Sea-Suez Canal corridor have prompted major carriers to suspend or restrict transits, extending transit times by 10-20 days and raising freight rates by 40-50% on key India-Europe routes, according to industry executives and insurers.

The Cape diversion has added up to 10,000-15,000 nautical miles to voyages, inflating fuel burn, crew and operating expenses that are being pass...