Shipping lines switching away from the Red Sea over attacks in the Gulf region, adding 10 days to the journey
The threat to supply chains now ranks above the risk of recession among what Irish business leaders see as the main risks to business this year.
Businesses from retail to manufacturing and construction suffered significant fallout in 2020 and 2021. Covid lockdowns combined with a lengthy blockage after a container ship ran aground in the Suez Canal, caused supply chains and shipping infrastructure many had taken for granted to snarl up. It helped fuel a spike in inflation as businesses and consumers competed for scarce supplies.
Fallout from the Israel-Hamas conflict is behind the new threat to supplies.
Shipping lines are switching away from the Red Sea – which provides the shortest route from Asia to Europe via the Suez Canal – after Iran-backed Houthi militants in Yemen stepped up attacks on vessels in the Gulf region to show their support for Palestinian Islamist group Hamas fighting Israel in Gaza.
Diverting container ships around Africa will add about 10 days to journey times, meaning higher fuel and crew wages.
That’s already pushing trade risks towards the top of the…
