The Red Sea attacks by the Iranian backed militant group, Houthis has led to more than half of UK export businesses being affected by disruption.
The Houthis rebels have been attacking commercial vessels in the Red Sea and the Gulf of Aden and the British Chambers of Commerce (BCC) has warned that if the attacks continue this will place further pressure on businesses.
Around 53% of business to consumer such as supermarkets who have been warning that some items maybe affected as a result, this also includes manufacturing companies.
According to the research by the BCC’s Insights Unit, the figure rises higher to 55% of British exporters who export goods overseas.
William Bain, the head of trade policy at the BCC, said this research provides “an immediate insight into the impact of Red Sea disruption on UK businesses.”
“There has been spare capacity in the shipping freight industry to respond to the difficulties, which has bought us some time,” he said.
“And recent ONS (Office for National Statistics) data also indicates the impact has yet to filter through to the UK economy, with inflation holding steady in January.
“But our research suggests that the longer the current situation persists, the more likely it is that the cost pressures will start to build.”
Bain said the BCC represents thousands of businesses and they are calling on Jeremy Hunt to use the spring Budget to provide greater support for exporters.
“We are calling for the establishment of an Exports Council to hone the UK’s trade strategy and a review of the effectiveness of government funding for export support,” he said.
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