Retail industry stakeholders, including European retail industry body Eurocommerce, are urging European Union members to resolve the Red Sea crisis currently disrupting trade, reports Reuters.
To avoid Houthi militant attacks in the Red Sea, shipping companies have resolved to reroute ships around Africa’s southern tip, increasing travel time by two to three weeks in addition to shipping costs. In particular, the crisis disrupts supply chains between Asia and Europe.
"The longer carriers are forced to reroute, the more businesses, and ultimately consumers, will suffer from additional costs adding to the already high costs of living in Europe," Eurocommerce said in a letter.
The conflict in the Red Sea has caused fears that inflation in Europe will be affected.
"Given the magnitude of the impacts on businesses and the global supply chain, we appeal for continued intensified and coordinated efforts by the EU institutions and Member States to address the situation," Eurocommerce said. Full Story (Subscription Required)