From NBC Universal:

Iran-backed Houthi rebels attacking vessels in the Red Sea are causing disruptions in the global supply chain, leading to higher freight prices and delayed product deliveries from rerouted vessels. Longer transit times and increased costs are expected due to ship diversions, impacting retailers and carriers alike.

The longer transit and rerouting of vessels is affecting the availability of products such as spring clothing, home goods, and electronics. Retailers like Next and Ikea are already warning of potential stock delays, while logistics companies are working on mitigation strategies to minimize disruption and increase efficiency.

The disruptions in the supply chain are contributing to a surge in ocean freight rates, with the potential for significant rate increases and additional surcharges. This unexpected rate increase, as well as reduced vessel volume in the Suez Canal, is causing substantial financial losses for carriers and creating more challenges for global shipping.

The diversion of vessels and container rerouting is leading to a shortage of containers, reminiscent of the challenges faced during the COVID pandemic. Logistics companies are stressing the need for careful planning to address container shortages and ensure a smooth flow of shipments amid the ongoing disruptions in the supply chain.



Read more: Global shipping rates set to surge as carriers avoid Red Sea