From Fortune:

Fashion companies like H&M and Zara are facing up to two-week shipping delays as global shipping companies re-route vessels around Africa’s southern tip due to attacks on shipping vessels from Yemen’s Houthi group. Rerouting can cost up to $1 million extra in fuel costs. Several brands are already experiencing delays, with more expected if the disruptions continue.

Shipping delays in the Red Sea have led several fashion companies to face difficult choices. Deliveries are taking longer and will result in increased shipping costs, causing companies to consider alternative transportation routes like air freight. The disruptions are expected to have a significant impact on the global fast-fashion economy, with South Asia being the most heavily impacted.

Vessels that have to reroute around Africa’s southern tip are facing longer trips and significant delays, leading to higher costs and unreliable schedules. The disruptions in the Red Sea are already costing companies money and could lead to even pricier shipping in the future. U.S. customers have yet to feel the price pinch, but the situation might change if the disruptions continue.

About 12% of global trade sails on the Red Sea each year, and the disruptions are affecting nearly 20% of all imports to the U.S. The surge in shipping rates has impacted apparel imports from Asia significantly. International shipping company Maersk has paused all vessels bound for the Red Sea following a near-miss incident and attacks on container vessels.

The origins of the Red Sea shipping crisis can be traced back to attacks on shipping vessels from Yemen’s Houthi group. The attacks are a response to the catastrophic assault on Gaza by Israel. Since the attacks started, the U.S. and United Kingdom have carried out airstrikes on Houthi targets, including the country’s capital city Sana’a and the city’s international airport. No serious injuries have been reported.



Read more: Red Sea crisis slows down fast fashion