In a recent survey of more than 1,000 businesses by the British Chambers of Commerce,55% of exporters surveyed said the disruption to trade in the Red Sea was having a knock-on effect, with their export business affected by tensions in the Red Sea.
The report said that the impact is mainly manifested in two aspects: first, transport costs have soared, with some companies saying that their ship leasing costs have increased by 300 percent; Second, the supply time is extended, which is 3 to 4 weeks longer than the normal state before. In addition, companies' cash flow and inventory replenishment are also affected.
William Bain, head of trade policy at the British Chambers of Commerce, said the longer the Red Sea trade crisis lasts, the more obvious its impact on the British economy and society may become, and the tensions in the Red Sea will further push up inflationary pressures in Britain.
For British exporters, exports are in a difficult state due to a lack of external demand. Tensions in the Red Sea will add to the difficulties for British exporters. The government needs help for British exporters in next month's budget.
The survey also said that tensions in the Red Sea have forced a number of international shipping companies to suspend the Suez Canal to the Red Sea route, bypassing the Cape of Good Hope in southern Africa. Companies in most European countries reported a deterioration in their supply chains, including major economies such as Germany, France and Italy. Manufacturers in Greece, one of the EU countries closest to the Suez Canal, have been hardest hit.
According to British media reports, 22% of the world's shipping containers passed through the Suez Canal last year, carrying goods including natural gas, oil, cars, raw materials and many industrial products and parts. By early February, 586 container ships had been diverted from the Suez Canal.
The risk of commercial shipping passing through the Red Sea continues to escalate
Just last weekend, the British cargo ship attacked by the Houthis had completely sunk in the Red Sea. The fertilizer carrier, the Rubymar, was attacked by the Houthis on Feb. 18 and began to sink after taking on water.
According to a statement from U.S. Central Command a week ago, the USS Rubymar slowly began to take on water after being hit on the side, creating an oil slick across tens of kilometers of ocean. After the attack, its crew was evacuated to Djibouti.
The sinking of the Rubymar is the first by the Houthis since October 7, 2023, when they began targeting specific vessels transiting the Red Sea.
Since November, the Houthis have launched more than 45 attacks on commercial and military vessels, reducing commercial traffic on waterways vital to international trade by 42 percent.
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