2024-02-16 19:36:23
The organization of European retailers “Eurocommerce” (Eurocommerce) called on European institutions and EU member states to do what is necessary to resolve the crisis in the Red Sea, which is disrupting global trade, reported Reuters and BTA. In a letter addressed to Belgium’s foreign minister, the group said it was already having a “serious impact” on business.
Many companies diverted their ships from routes through the Red Sea to avoid Houthi attacks, which have become more frequent since the beginning of December and disrupted supply chains, BTA reports.
Among the members of “Eurocommerce” are the supermarket chains “Ahold Delhaize”, “Carrefour”, “Lidl”, “Marks and Spencer” (M&S), “Tesco”, as well as fashion giants H&M, Inditex and Primark.
“The longer ships take the longer route, the longer businesses and consumers will suffer from additional costs, adding to the already high cost of living in Europe,” the letter said.
Merchants who receive goods from China and Southeast Asia report that they arrive with a 2-3 week delay.