The disruption caused by the recent attacks in the Red Sea has sent shockwaves through the global shipping industry, severely affecting over half of retailers and exporters in the United Kingdom. According to a report from the British Chambers of Commerce (BCC), the repercussions of these attacks have been profound, leading to significant challenges in supply chains and logistical operations.
The BCC's survey of more than 1,000 companies revealed alarming statistics. Shipping costs for containers travelling from Asia to Europe have skyrocketed, with some companies facing increases of up to 300%. Additionally, the delays in transit have resulted in substantial extensions of delivery times, with an average of three to four weeks being added.
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These disruptions have had a domino effect on businesses, causing component shortages in production lines and triggering cashflow problems. William Bain, the head of trade policy at the BCC, has emphasised the urgent need for government intervention to support exporters facing these challenges. With the Budget looming next week, there is a pressing call for measures to alleviate the strain on affected industries.
Source: www.retailgazette.co.uk