More than half of British exporters say they are suffering from the disruption to shipping caused by the Houthi attacks in the Red Sea, resulting in delays and additional costs, according to a survey by the British Chambers of Commerce (BCC).

After surveying nearly 1,000 British companies about the Houthi attacks in the Red Sea, the British Chambers of Commerce (BCC) are warning of cost increases, which their nationals have reported to them, of up to 300% to obtain containers.

Companies are also reporting logistical delays of up to four weeks, which are impacting their production due to component shortages, and affecting their cash flow.

No impact on inflation for the moment

For the time being, the additional costs have not yet been felt on the overall rate of inflation in the UK, but "the longer the situation persists, the more cost pressures will begin to build", warn the BCC.

This comes against a backdrop of depressed economic conditions, they point out. British exports fell last year as a result of sluggish global demand. The chambers are calling on the government to introduce support measures, to be included in the March draft budget.

An international military response

The Houthi rebels, who control vast areas of Yemen, have been carrying out attacks against ships in the region since November, in support of the Palestinian Hamas. In response, the United States and Great Britain are carrying out massive military air and ground strikes, with operational support from Canada, Australia, Bahrain, Denmark, the Netherlands and New Zealand.

La rédaction (avec l’AFP)