Exporters are scrambling to find alternative air, land and ocean routes to get toys, apparel, tea and auto parts to retailers as disarray ripples through freight supply chains around the world during a wave of attacks in the Red Sea, according to Reuters.
Houthis in Yemen have stepped up attacks on vessels in the Red Sea since Nov. 19 to show support for Hamas during Israel’s military offensive in Gaza.
The attacks have disrupted a key trade route linking Europe and North America with Asia via the Suez Canal. Container shipping costs have surged, more than tripling in some cases, as companies seek to move goods via other, often longer, ocean routes.
If there are extended disruptions, the consumer goods sector that supplies the world’s top retailers like Walmart and IKEA will face the biggest impact, S&P Global said in a report.
