01/09/2024

How Attacks in the Red Sea Could Increase Consumer Costs

It could impact everything from clothes to coffee

Attacks on commercial vessels in the Red Sea by the Houthi militia in Yemen are leading to increased freight costs and delivery times—and experts say the impact is soon going to hit consumers.

Several of the world’s largest shipping firms, including Maersk, Hapag-Lloyd and the Mediterranean Shipping Company (MSC), have suspended shipping through the Red Sea trade route amidst the continued attacks.

"Our expectation is that within the next couple of weeks, you will begin to see the impact of this disturbance in the supply chain, either through shortages, price increases or shrink-flation," said Marco Forgione, the Director General at The Institute of Export & International Trade. 

Please select this link to read the complete article from TIME.