UK manufacturers and retailers are not yet passing on all the costs of diverting ships round southern Africa – but can that last?
The coordinated attack on the ship, which was partly owned by Israeli billionaire Abraham Ungar, was the start of a six-month campaign by Yemen-based militants to terrorise western vessels using the route, in response to the conflict in Gaza.
Many shipping firms are now diverting vessels on to the safer, but much longer and more costly, route around the tip of southern Africa, passing the Cape of Good Hope. This can add 10 days to a journey and increase fuel costs by 40%. A British Chambers of Commerce survey in February of its exporter members found that more than half of manufacturers and retailers had been affected by the Red Sea crisis. Some reported price rises of 300% for container hire, and four weeks being added to delivery times.
Some companies have switched to rail freight, with the number of trains leaving China for Europe dramatically increasing in recent months Some of this will be because companies are realigning their supply chains. Asos and Boohoo have ramped up their “nearshoring” – sourcing more products from Turkey and Morocco rather than Asia. Marco Forgione, director general of the Institute of Export and International Trade, also points out that some companies have switched to rail freight, with the number of trains leaving China for Europe dramatically increasing in recent months.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Middle East crisis live: Houthis hit ship in latest Red Sea attackAndromeda Star targeted with three missiles, UK Maritime Trade Operations security agency said
Read more »
Peter Dutton compares ‘river to the sea’ chants at pro-Palestinian protests to HitlerOpposition leader’s comments ‘a very bad faith’ reading of protestors’ chant, Jewish Council of Australia says
Read more »
NRL round 10 LIVE: Dolphins v Sea Eagles at Suncorp StadiumThe Dolphins are sitting pretty in the top four as they prepare to host a Sea Eagles side smarting from one of the great NRL capitulations last week.
Read more »
NRL round 10 LIVE: Dolphins v Sea Eagles at Suncorp StadiumThe Dolphins are sitting pretty in the top four as they prepare to host a Sea Eagles side smarting from one of the great NRL capitulations last week.
Read more »
NRL live updates: Dolphins vs Manly Warringah Sea EaglesThe Dolphins look to stay in the NRL's top four against a Manly team looking to bounce back after their stunning capitulation against Canberra last week. Follow live.
Read more »
Meta board set to rule if ‘from the river to the sea’ is ‘hate speech’Meta’s Oversight Board will consider whether the phrase “From the river to the sea,” which is often chanted by pro-Palestinian protesters, constitutes hate speech and warrants a ban from its social media platforms Facebook and Instagram.
Read more »