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Most UK exporters affected by disruption in Red Sea: Survey

  • By Al Mayadeen English
  • Source: Agencies
  • 26 Feb 2024 04:35
2 Min Read

The report emphasizes that some companies reported a fourfold increase in container rental costs due to the current situation in the Red Sea.

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  • Red Sea
    This photo provided by the Indian Navy shows the US-owned ship Genco Picardy that came under attack Wednesday from a bomb-carrying drone launched by the Yemeni Armed Forces in the Gulf of Aden, on Thursday, Jan. 18, 2024. (Indian Navy via AP, File)

A survey conducted by the British Chambers of Commerce (BCC) revealed that the majority of British exporters and manufacturers have felt the impact of disruptions in the Red Sea, Reuters reported.

The BCC highlighted that 55% of exporters reported being affected, along with 53% of manufacturers and "business-to-consumer" services firms, a category that includes retailers and wholesalers, according to Reuters.

Overall, 37% reported experiencing an impact across all businesses, the survey found.

"Our research suggests that the longer the current situation persists, the more likely it is that the cost pressures will start to build," BCC's head of trade policy, William Bain, was quoted as saying.

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The report emphasized that some companies reported a fourfold increase in container rental costs, while others faced delivery delays ranging from three to four weeks, along with cash flow challenges and shortages in spare parts.

In the same context, the Bank of England highlighted the state of disruption in the Red Sea as one of the main upward risks to inflation this year.

The S&P Purchasing Managers' Index also indicated Thursday that the costs for British companies rose at the fastest rate in six months in February.

It is noteworthy that the operations of the YAF against Israeli and Israeli-bound ships -- carried out in support of the people of Gaza until the Israeli aggression on the Strip ceases -- have forced some companies to take alternative routes including a two-week detour around the tip of southern Africa.

The YAF have also reiterated that they only chose clear and specific targets to hit the Israeli enemy until the American and British forces became involved in the aggression against Yemen, which turned them into targets as well, reiterating that no other countries are being targeted by the YAF.

Read more: US struggling to halt Red Sea attacks despite strikes: Officials

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