The attacks have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal. — Reuters
LONDON: Exporters are scrambling to find alternative air, land and ocean routes to get toys, apparel, tea and auto parts to retailers as disarray ripples through freight supply chains around the world during a wave of attacks in the Red Sea.
Iran-backed Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea since Nov 19 to show support for Hamas during Israel’s military offensive in Gaza.
The attacks have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal. Container shipping costs have surged, more than tripling in some cases, as companies seek to move goods via other, often longer, ocean routes.
If there are extended disruptions, the consumer goods sector that supplies the world’s top retailers like Walmart and Target will face the biggest impact, S&P Global said in a report.
Some firms are trying to switch to intermodal transport, which can involve two or more modes of transportation, said Jan Kleine-Lasthues, chief operating officer of Hellmann Worldwide Logistics. — Reuters
