Crisis in the Red Sea

EuroCommerce demands a tough response from the EU to the Red Sea crisis. The European retail trade body EuroCommerce has called on the European Union institutions and member states to resolve the crisis in the Red Sea, Reuters reports. According to experts, the danger to civilian vessels on one of the world's most important trade routes has already led to serious trade disruptions and had a "massive impact" on the state of business in the industry.

EuroCommerce demands a tough response from the EU to the Red Sea crisis

To avoid attacks by Houthi militants, which have become more frequent since early December, shipping companies are rerouting container ships, and the much longer travel times disrupt the established supply chains for all companies that rely on shipping by sea through the Suez Canal.
EuroCommerce has made its demand public and reminded that it speaks on behalf of such respected companies as Ahold Delhaize, Carrefour, Lidl, M&S and Tesco supermarket chains, as well as fashion brands H&M, Inditex and Primark.

"The longer carriers are forced to reroute, the more companies and ultimately consumers will suffer additional costs that will increase the already high cost of living in Europe," EuroCommerce said in a statement.

The route from Southeast Asia bypassing the Red Sea via the Cape of Good Hope usually takes 2-3 weeks longer and is accompanied by significantly higher fuel and labor costs. The EU is about to launch a joint naval mission in the Red Sea.

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