New survey reveals extent of disruption for UK exporters and retailers from Red Sea disruption. 

Over half of UK retailers and exporters have been financially impacted by the current crisis in the Red Sea, says a new survey. 

A survey by British Chamber of Commerce (BCC) found that 55% of exporters have reported higher shipping costs and delays, as did 53% of manufacturers and retail businesses . 

Delays created by the Red Sea crisis have created knock-on effects for many retailers and exporters including cashflow difficulties and production lines components. 

The price of shipping containers from Asia to Europe has gone up 300% for some businesses, whilst logistical delays have added 3 to 4 weeks to delivery times, the survey also revealed as reported in The Guardian. 

These supply chain problems will be further exacerbated with China commencing shipping following the end of Lunar New Year celebrations.  

Airfreight is becoming a popular alternative, with spot rates from China to Europe increasing by 8% in early Feb and 14% from China to the US according to delivery aggregator ParcelHero. 

Moody’s warned that if prices remained high, retailers may see a “material impact on profitability by the end of 2024”. UK retailers are already feeling the supply chain squeeze from the disruption.  

Tetley Tea said it was facing much tighter supply issues due to disruptions in the Red Sea. A quarter of all tea imports into the UK will be impacted, should the disruption be prolonged.