Majority of UK exporters struck by Red Sea predicament
Date
2/29/2024 6:19:41 AM
(MENAFN) A recent survey conducted by the British Chambers of Commerce (BCC) reveals that more than half of British exporters and manufacturers are grappling with challenges arising from shipping disruptions in the Red Sea, primarily caused by Houthi rebel attacks on vessels. The survey, which encompassed over 1,000 firms, indicates that 55 peercent of exporters and 53 percent of manufacturers and business-to-consumer services firms, including retailers and wholesalers, have reported problems linked to the ongoing crisis.
The impact on businesses has been multifaceted, with increased delivery costs emerging as a significant concern. Some firms reported staggering spikes, with the price of shipping a container from Asia to Europe soaring by up to 300 percent in recent months. Logistic delays have also posed substantial challenges, extending usual delivery times by three to four weeks.
Cashflow difficulties and component shortages on production lines further compound the issues faced by businesses.
The BCC's head of trade policy, William Bain, emphasized the immediate insights provided by the research into the disruptive consequences of the Red Sea crisis on United Kingdom businesses. While there has been some spare capacity in the shipping freight industry to mitigate difficulties temporarily, the survey suggests that prolonged disruptions could lead to escalating cost pressures for businesses. As the situation persists, the survey findings highlight the urgency of addressing the challenges to safeguard the resilience of the United Kingdom's exporting and manufacturing sectors.
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