British Exporters and Manufacturers Feel the Heat of Red Sea Disruptions

A recent survey has revealed that the majority of British exporters and manufacturers are feeling the impact of disruptions in the Red Sea. The British Chambers of Commerce reported that 55% of exporters and 53% of manufacturers and service companies, including retailers and wholesalers, have seen their operations affected. Across all commercial transactions, 37% reported an impact.

Some companies reported that the cost of container rentals has quadrupled, while others faced delivery delays ranging from three to four weeks. These disruptions have also led to cash flow difficulties and a shortage of spare parts.

The Bank of England has highlighted the situation in the Red Sea as one of the main upward risks for inflation this year. The S&P Purchasing Managers’ Index showed on Thursday that the costs for British companies rose at the fastest rate in six months in February.

Many manufacturers pointed to the increased shipping costs associated with the Red Sea disruptions. However, rising wage bills were a bigger factor for most.

The Yemeni military has assured the navigation movement in the Arabian Sea, the Red Sea, and Bab al-Mandab for all ships, except Israeli ships and those heading to the ports of occupied Palestine until the aggression on Gaza stops. Recently, American and British ships have also been targeted due to the American-British aggression on Yemen.

It is worth noting that the Yemeni armed forces have managed to target seven British ships. The first ship, “Marlin Luanda,” was targeted on January 26. In February, six more British ships (Morning Tide, LYCAVITOS, Pollux, RUBYMAR, ISLANDER, and another trade ship) were targeted.