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£3 billion of UK goods, including clothing, furniture and household appliances are at risk of being delayed should the current crisis in the Red Sea continue, according to our analysis.
This analysis is based on an analysis examining goods imported into Felixstowe during June 2023 to September 2023. This is a key period for retailers, when many companies stock up on popular items to sell over the Christmas and Bank Holiday season.
This analysis comes as retailers, particularly in Europe, are stocking up on key items earlier this year, to avoid shortages during the autumn and winter months.
We have identified the following commodities that would be at risk, if the Red Sea disruption continues or escalates over the coming months:
Preserved Fruits & Vegetables (£424 million)
Clothing (£403 million)
Pharmaceuticals (£376 million)
Household Appliances (£211 million)
Meat Products (£193 million)
Textiles (£192 million)
Furniture (£175 million)
Wine (£141 million)
Perfumes & Cosmetics (£137 million)
Soft Drinks (£78 million)
Taking a deeper look at the companies exposed to this disruption revealed supermarkets, retailers and fashion and cosmetic brands all being impacted by significant delays.
Supermarkets topped the list, with a high exposure of £1 billion, with brands including Tesco, Sainsburys, Asda, Morrisons, Iceland, Waitrose, Aldi, Lidl and Iceland, all impacted.
Retailers had slightly less, but still high exposure of £381 million, with many UK high-street brands including John Lewis, Marks & Spencer, Currys, Poundland, Boots, Next, Argos, Selfridges, Costco and Argos, all impacted.
Many leading UK and global fashion and cosmetics brands, such as Chanel, Ted Baker, Burberry, Barbour and Carpi Holdings, have a combined exposure of £214 million.
Suki Basi, Managing Director of Russell Group, commented on the figures:
“The crisis in the Red Sea is playing havoc with global supply chains, causing delays in shipping and higher shipping rates, all of which are adding to backlogs at ports. It is no surprise that many UK companies have issued profit warnings ahead of quarterly earnings.
We are entering the period when many companies are putting in orders to stock up on items, in preparation for the festive season. Yet, as our analysis shows, there is a significant chance that the crisis in the Red Sea may result in delays of key items.
There is little chance of today’s storm filled political climate easing up in the coming months, with many shipping companies expecting the disruption to continue for a long time. Expect more uncertainty going forward and at the same time action mitigatory action through insight and analysis.”
