IN the wake of heightened attacks in the Red Sea, exporters are urgently seeking alternative routes-by air, land, and sea-to transport toys, apparel, tea, and auto parts to retailers, reports Reuters.
The increased assaults by Iran-backed Houthi militants in Yemen since November 19 have disrupted a crucial trade route connecting Europe and North America with Asia through the Suez Canal.
As a result, container shipping costs have surged, more than tripling in some instances, as companies navigate alternative, albeit often longer, ocean routes.
The ongoing disruptions pose a significant threat to the consumer goods sector, which supplies major retailers like Walmart and IKEA, especially if the disturbances persist, according to a report by S&P Global.
"It doesn't help that it's Christmas weekend," said OL USA CEO Alan Baer.
"We'll have a quiet period from now until January 2, and then everybody will be frenetic."
Source: shippingazette