Red Sea attacks could push up prices, UK firms warn
BBC·2024-01-03 09:01
Image source, Boxer Gifts Image caption,
Thomas O'Brien said his shipping costs had soared in the last two weeks
By Sam Gruet & Jonathan Josephs
BBC News
"Some of our costs have gone up 250%".
That is the reality for Thomas O'Brien, boss of family-run Boxer Gifts, which designs games and seasonal presents.
Their products are made in China so the Leeds-based firm relies heavily on global shipping. But attacks on commercial vessels in the Red Sea have prompted long diversions to avoid one of the world's busiest shipping lanes.
Mr O'Brien is among business owners who have told the BBC this could lead to delays and price rises.
It follows a warning from the British Retail Consortium (BRC) that the disruption could have a knock-on effect on product availability and prices.
Chief executive Helen Dickinson said this was "as a result of higher transportation and shipping insurance costs".
"Over the coming months, some goods will take longer to be shipped," she added.
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