Yemen Strangles UK Economy at Bab Al-Mandab: The Fallout is Unending
The repercussions of Yemeni maritime operations continue to escalate on the British economy. Economic reports in recent days have revealed that major companies in the United Kingdom are facing increasing supply problems, suffering from rising shipping costs, and the financial situation of many sectors in the country is at stake.
In a report published on Saturday evening, the British newspaper “The Sun” stated that the Yemeni attacks, which forced British ships to divert their course away from the Red Sea, will soon make consumers in the United Kingdom pay more costs for everything from cars to tea.
The Yemeni operations have raised concerns about supplies for major British companies such as Marks & Spencer, Next, Poundland, and Primark. The report pointed out that the British oil company “BP” (British Petroleum) has been forced to divert its shipping routes amid threats of rising fuel prices, a situation that threatens to reignite inflation.
Shipping companies are already suffering from an additional cost averaging 800,000 pounds sterling each time they are forced to change their course, in addition to delays of up to two weeks. The report mentioned that the British company Sainsbury recently warned that tea supplies are at risk due to attacks in the Red Sea.
There are signs in the store saying, “We are experiencing supply issues affecting the nationwide supply of black tea. We apologize for any inconvenience and hope to be back in full supply soon.” The report quoted one of the stores as saying, “Supply has become a problem at the industry level.”
The report mentioned that the announcement of the expansion of Yemeni operations to the Indian Ocean “affects ships that divert their course hundreds of miles; to circle around Cape of Good Hope in South Africa towards Europe.”
The newspaper quoted Bjorn Gulden, the CEO of the giant sportswear company Adidas, as saying, “Exploding shipping prices lead to rising costs amid fears of rising store prices.” It added that major British companies, such as “Marks & Spencer” and “Durex” and other companies like Danone and IKEA, warned of the impact of shipping delays.
According to the report, the British fashion chain “Next” expected “sales growth to be low if the disturbances continue until the end of 2024.” The report also mentioned that the major British store chains “Poundland” and “Primark” warned that “supplies could be damaged in the coming months if the Houthis (Ansar Allah) are not stopped.”
The newspaper quoted defense analyst Paul Beaver as saying that the Yemenis “have warned that they have more surprises for ‘Israel’ and its Western allies, a threat that we must take seriously.” He said, “Ships now have to divert their course thousands of miles, but if this alternative route is also seriously threatened, the impact could be catastrophic, and it will have a serious impact on the supply of products that we all rely on.”
Beaver confirmed that he “will not be surprised” if the armed forces do “something amazing far from Yemen using a drone or a missile or even a submarine under the sea.” Last Friday, the American magazine “Global Trade” published a report in which it quoted Andrew Thomson, the CEO of Cleveland Containers Group, one of the leading companies in the United Kingdom in the field of supplying shipping containers, as saying that the Yemeni attacks “caused severe delays in shipping delivery operations, where the alternative route can extend transit times to at least two or three weeks, and in return, the delays also have an indirect effect on the operations of sectors and companies throughout the United Kingdom; affecting the availability of stock and delivery prices.”
According to the magazine, “Many sectors in Britain, such as retail and construction, are significantly affected by the disruptions in the Red Sea.”
The report pointed out that “the manufacturing sector is undoubtedly one of the sectors that must deal with the severe consequences of the ongoing situation; for example, at the beginning of 2024, major car manufacturers like Volvo, Tesla, and Suzuki had to suspend some production across Europe due to a shortage of components.”
It added that “in the United Kingdom in particular, the manufacturing sector has seen a decline in operations recently, and the problems in the Red Sea have further hindered the situation. As of January 2024, the Purchasing Managers’ Index reached 47.0, noting that any reading less than 50 indicates contraction.”
The magazine mentioned that “the current delays lead to an extension of the expected delivery operations, causing disruptions in production schedules and increasing financial pressures at a time when companies are already struggling to cover their expenses.”
It pointed out that the situation in the Red Sea also leads to an increase in the cost of shipping goods to Britain, saying, “The forced change in the route led to a 30% increase in sailing times, which led to an increase in fuel consumption and extended work shifts for ship crews.”
It added that “shipping companies face additional port fees, as ships often need to stop along the way, in addition to a general increase in shipping costs.”
According to the report, “In the end, this is why companies across the United Kingdom are currently forced to spend more money on delivering products, items, and materials to continue their operations.”
In addition, the report pointed out that “the delay in the exit of goods from China and other parts of the world leads to an escalation of demand and impact on its availability, and some sectors may face significant storage problems, while other sectors may not have the materials they need to feed their industrial operations.”
It explained that “in short, the disruptions in the Red Sea cause a slowdown in production, leading to a decrease in it and total revenue losses for companies across the country.”
It concluded by saying, “The financial well-being of many sectors is at stake.”
At the end of last February, the British Chamber of Commerce had published a report revealing that the Yemeni operations had caused damage to 55% of exporters in Britain and 53% of manufacturers and retailers, as well as a 300% increase in container shipping costs and significant delays in delivering goods to the United Kingdom.
The British Chamber of Commerce report mentioned that “the effects of the Yemeni operations also led to cash flow difficulties and a shortage of components in production lines, within Britain.”
William Bain, Head of Trade Policy at the British Chamber of Commerce, said, “The longer the current situation lasts, the more likely cost pressures will start to accumulate.”
These pieces of information clearly reveal that the predicament that Britain fell into through its participation in the aggression on Yemen to serve the Zionist entity is escalating over time, and its impact reaches all consumers inside Britain; which means that the British government is sacrificing the interests of the British; for the sake of protecting Zionist navigation, knowing that it has not even succeeded in this task, as the “BBC” quoted a few days ago statements by senior officers in the American navy confirmed that the destroyer “Diamond” operating in the region was unable to shoot down any Yemeni ballistic missile, and that the armed forces use weapons “more advanced and deadly.”