Disruption to shipping caused by Houthi rebels risks driving up prices on UK supermarket shelves
DISRUPTION to shipping caused by the Houthi rebels risks driving up prices on UK supermarket shelves.
Container ships heading to Europe that usually go through the Suez Canal are being diverted around Africa — adding at least ten days and extra costs.
Big container ships are being diverted because of the threat of violence from Yemen’s Houthi rebels who are targeting ships in protest about violence in Gaza.
Simon Roberts, chief executive of Sainsbury’s, said that it was having regular calls with government officials to be updated on the unrest in the Red Sea.
And industry experts have warned pressure on inflation will rise the longer the Red Sea is out of action.
Sainsbury’s boss Simon Roberts said: “It’s an issue for many commercial businesses and, therefore, an important issue that the Government would want to be involved with.
“We’re on regular calls there to make sure that the latest intel and understanding is understood.”
Oil giant BP has also re-routed its tankers, stoking fears about higher oil prices.
But yesterday Bank of England governor Andrew Bailey said Middle East tensions had not yet had the effect he feared it might.