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This page is the English version of Almasirah Media Network website and it focuses on delivering all leading News and developments in Yemen, the Middle East and the world. In the eara of misinformation imposed by the main stream media in the Middle East and abroad, Almasirah Media Network strives towards promoting knowledge, principle values and justice, among all societies and cultures in the world

Yemen Suffocating British Economy at Bab-el-Mandeb Strait: Repercussions Ongoing

Yemen: The escalating repercussions of Yemeni naval operations on the British economy continue to unfold, as recent economic reports reveal that major companies in the United Kingdom are facing increasing supply problems and suffering from rising shipping costs, with the financial situation of many sectors in the country now hanging in the balance.

In a report published on Saturday evening, the British newspaper The Sun reported that Yemeni attacks that forced British ships to divert away from the Red Sea will soon lead consumers in the United Kingdom to pay more for everything from cars to tea. It pointed out that Yemeni operations "have sparked supply fears for big British firms such as Marks & Spencer, Next, Poundland and Primark."

The report also indicated that the British oil firms including BP and Shell have “been pressured to divert amid threats to fuel prices that threaten to rekindle the spectre of inflation.”

The newspaper said, "Shipping companies are already reeling at the extra cost of an average £800,000 every time they are forced to re-route, coupled with two-week delays."

The report mentioned that the British Sainsbury’s recently warned that tea supplies are at risk due to attacks in the Red Sea.

According to the report, there is a sign in one of the chain’s stores read: “We are experiencing supply issues affecting the nationwide ­supply of black tea. We apologize for any inconvenience and hope to be back in full supply soon.”

The newspaper quoted the supermarket as saying that supply had become an ­“industry-wide issue”.

The report mentioned that the latest warning of the expansion of Yemeni operations into the Indian Ocean "affects vessels diverting hundreds of miles away from his lair around South Africa’s Cape of Good Hope towards Europe.”

Bjorn Gulden, chief executive of sportswear giant Adidas, has also warned “exploding” freight rates were driving up costs amid concern that shop prices will rise.

It added that warnings have also come from food group Danone, condom makers Durex, Swedish furniture company Ikea, and Marks & Spencer, which was hit by delays of clothing shipments.

According to the report, the British fashion chain Next also predicted “sales growth would likely be moderated if disruptions continue through 2024.”

The report also mentioned that major British retail chains Poundland and Primark have also cautioned that “supplies could be hit in the coming months if the Houthis are not stopped.”

The newspaper quoted defense analyst Paul Beaver as saying that Yemenis “have warned that they have more surprises in store for Israel and its Western allies and it is a threat we must take very seriously.”

He said, “Trade routes through the Suez Canal have already been badly affected, with ships having to divert thousands of miles. But if that alternative route also comes under serious threat, the effect could be catastrophic and have a serious effect on the supply of products we all rely on.”

Beaver confirmed that “It would not surprise me” if the Yemeni Armed Forces did something spectacular far from their territory soon — possibly using a ship-launched kamikaze drone or missile or even an undersea drone.”

On the past Friday, the American magazine Global Trade published a report quoting Andrew Thompson, Chief Executive Officer of the Cleveland Group, which consists of Cleveland Containers, Cleveland Hire and Cleveland Modular, as saying that Yemeni attacks have forced global shipping firms to amend their itineraries, with vessels now cruising around the Cape of Good Hope (South Africa) and then all the way up the west side of the continent.”

“This is causing severe delays to shipping deliveries, as the alternative route can extend transit times to at least two or three weeks. And, in turn, the delays are also having a knock-on effect on the operations of sectors and companies all over the UK, impacting stock availability and delivery pricing.”

According to the magazine, many sectors, such as retail and construction, are being significantly affected by the Red Sea disruptions, as companies deal with supply chain logjams due to the rerouting of deliveries.

The report pointed out that "manufacturing is no doubt one of the industries that has to tackle the harsh consequences of the ongoing situation, too. For example, at the start of 2024, big automakers such as Volvo, Tesla, and Suzuki had to suspend some production across Europe because of shortages in components.”

It added that "in particular, the UK manufacturing sector has witnessed a decline in operations in recent times, and the Red Sea problems have contributed to hindering the situation even further. As of January 2024, its purchasing managers’ index (PMI) stood at 47.0, with any reading below 50 indicating a contraction.”

The magazine noted that the current delays are prolonging expected deliveries, causing disruptions to production schedules and increasing financial pressures at a time when companies are already struggling to make ends meet.

It pointed out that the situation in the Red Sea also leads to an increase in the cost of shipping goods to Britain, stating: "The forced change in route has increased sailing times by 30%, leading to a rise in fuel consumption and extended work shifts for ship crews.”

It added that "shipping companies are facing additional port fees as vessels need to stop more often along the way, as well as higher freight expenses overall."

According to the report, "Ultimately, this is why businesses across the UK are currently having to spend more money on the delivery of products, items, and materials to keep their operations going."

Furthermore, the report indicated that "the delays of goods leaving China and other parts of the world are escalating demand and impacting availability. Some sectors might be experiencing significant stocking issues, whereas others may not have the materials they need to fuel their industrial processes."

It clarified that the Red Sea disruptions are causing a slowdown in production, resulting in lower output and an overall loss in revenue for companies all over the country.

It concluded by saying that Yemeni attacks in the Red Sea is setting back transit times, increasing shipping costs, and putting the financial wellbeing of several sectors to the test.

At the end of last February, the British Chamber of Commerce had published a report revealing that Yemeni operations had caused damage affecting 55 percent of exporters in Britain, 53 percent of manufacturing companies, and retailers, as well as a 300 percent increase in container shipping costs and significant delays in delivering goods to the United Kingdom.

The British Chamber of Commerce report mentioned that the effects of Yemeni operations have also led to cash flow difficulties and component shortages in production lines, within Britain.

William Bain, head of trade policy at the British Chamber of Commerce states that the longer the current situation persists, the more likely cost pressures will accumulate.

These clear facts reveal that Britain's predicament, stemming from its involvement in the aggression against Yemen to serve the Zionist entity, is escalating over time, affecting all consumers within Britain. This indicates that the British government is prioritizing the mission of protecting Zionist navigation over the interests of the British people. However, the government has failed in this mission. A few days ago, the BBC reported statements from senior officers in the US Navy confirming that the destroyer Diamond, operating in the region, failed to intercept any Yemeni ballistic missiles. Additionally, it was revealed that the Armed Forces are utilizing "more advanced and lethal" weapons.
 

#Yemen #UK #Red Sea About 3 weeks
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This page is the English version of Almasirah Media Network website and it focuses on delivering all leading News and developments in Yemen, the Middle East and the world. In the eara of misinformation imposed by the main stream media in the Middle East and abroad, Almasirah Media Network strives towards promoting knowledge, principle values and justice, among all societies and cultures in the world

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