A British Economic Crisis Unfolds in the Red Sea after its aggression on Yemen
The Quagmire of Aggression on Yemen
The British Chamber of Commerce revealed this week that the UK economy has suffered extensive damage due to Yemeni operations supporting Gaza in the Red Sea and Arabian Sea. These operations have forced British commercial ships to divert their course and sail around Cape of Good Hope.
The Chamber published a report stating that it conducted a survey between January 15 and February 9, covering 1087 companies to understand the impact of the situation in the Red Sea on the economy. The report confirmed that “55% of exporters in the UK say they have been affected by shipping disruptions in the Red Sea.”
The report added that “53% of manufacturing companies and consumer service companies (such as retailers) confirm they have been affected.” The main effects reported by the companies are increased costs and delays.
The report mentioned that “37% of the total companies surveyed in general confirmed that they were affected.” The British Chamber of Commerce said: “Some companies reported a 300% increase in the cost of renting containers, and logistical delays add three to four weeks to delivery times.”
Companies also said that “this has had indirect effects such as cash flow difficulties and a shortage of components in production lines,” according to the report.
The report quoted William Bain, Head of Trade Policy at the British Chamber of Commerce, saying that “there was surplus capacity in the maritime shipping industry to respond to difficulties, which bought us some time, but our research indicates that the longer the current situation lasts, the more likely cost pressures are to start accumulating.”
He added that “it is clear that certain sectors of the economy are more vulnerable to this than others, but with the government recently introducing new customs controls and procedures for imports; which also led to increased costs and delays, this is a difficult time for companies.”
He said: “The UK economy saw a decrease in its total good exports for 2023, and with weak global demand, there is a need for the government to consider providing support in the March budget.”
He called for “the establishment of an export council to refine the UK’s trade strategy and review the effectiveness of government funding to support exports,” indicating that “everything possible must be done to help companies overcome these difficult times, and then focus sharply on expanding exports for the future.”
The British Broadcasting Corporation “BBC” published a report on the same subject, in which it quoted Rachel Waring, Managing Director of Warings Furniture, which imports interior decor for pubs and restaurants, saying: “The conflict has affected her work since before Christmas,” and she added: “We had to budget to cover additional costs; because the prices we get for containers were much higher.”
Waring said she “offers customers additional services to compensate for the delay, but she hopes to face some of the increases in costs by negotiating lower prices with the Chinese manufacturers she imports from, and avoid further price increases for customers if she can.”
The “BBC” pointed out that “earlier this month, one of the most famous tea brands in the UK (Tetley) warned that supplies are much less than it wants, while its competitor (Yorkshire Tea) said it is closely monitoring the situation.”
The report from the British Chamber of Commerce clearly confirms that the UK has entangled itself and exposed its economy to unprecedented risks by following the United States in the aggression on Yemen, where British commercial ships were not targeted before.
US Economy Also Hit by Yemeni Operations in Red Sea
Similar effects are hitting the American economy. At the end of last January, the economic website of the “CNBC” channel published a report revealing similar impacts starting to reach the US economy due to Yemeni operations targeting American ships in the Red Sea and Arabian Sea.
The channel reported that John Gold, Deputy Head of the National Federation for Supply Chain and Customs Policy, told a subcommittee in Congress that “companies of the National Retail Federation are facing a doubling of container prices from $1500 to $3000.” He indicated that “this represents an increase in the cost of directly affected shipments by 38% to 73%.”
He confirmed that “some small and medium-sized companies are passing the cost onto consumers,” warning that “in addition to rising shipping prices, additional fees are being applied not only to directly affected goods but also to additional trade routes, such as Europe to the United States; due to problems related to the availability of containers.”
He said that “longer crossing operations lead to the disintegration of containers; because they remain in use for a longer period,” indicating that “some retailers are moving their products to the air to speed up the delivery of their goods; which explains the reason for the recent large increase in air freight volumes.”
The channel reported that Dr. Ian Ralby, a congressional consultant, founder, and CEO of I.R. Consilium, which provides advice on maritime law, development, security, strategy, and private security regulation, informed Congress that “recent attacks by the US military have led to a larger targeting of American ships,” adding that “since we started hitting targets in Yemen, there has been an increase in the targeting of American ships.”
These impacts facing both the United States and Britain resemble what the Zionist enemy’s economy was exposed to due to the maritime embargo imposed by the Yemeni armed forces on ships associated with “Israel” in support of the Palestinian people. A report published earlier by the “Israeli” Ministry of Economy confirmed that Yemeni operations hit 25% of consumer goods imports to the occupation entity, and 21% of production materials imports, as well as affected its exports and deprived them of competitiveness.
Last week, the Hebrew newspaper “The Marker” revealed that container movement in the ports of the Zionist enemy decreased by 25% during last January and December, while the prices of various imported goods rose at the beginning of this February by rates reaching more than 40% according to reports published by several Hebrew economic media outlets.
Even in the Zionist entity, officials believe that the United States and Britain have failed to confront Yemen, as “The Marker” newspaper reported last week, quoting Yoram Ziba, head of the Shipping Chamber in “Israel”. This means that the Americans and the British, with their stance with the Israeli enemy and their aggression on Yemen, only led them to join the Zionist enemy in its escalating economic bleeding, as Yemen vowed that any aggression on Yemen will not pass without retaliation; which contributes to increasing pressure; to stop the brutal aggression on the Gaza Strip and lift the siege on the Palestinian people.