The conflicts on the Red Sea have led to a large part of the traffic stopping going through the Suez Canal. Instead, the Spanish ports are often the major destination for cargo ships, which go around Africa and deliver to the countries around the Mediterranean.
A supply chain that has become almost unsustainable for the producers.
– Importers and exporters do not know exactly when their goods will arrive. They also don’t know what the final cost is, says Jordi Espin Valbona, manager of the European shippers council, in Barcelona.
Leads to increase in inflation
According to Jordi Espin Valbona, it is a big cost for the shipping companies – a cost that ultimately ends up with the consumers.
– This leads to an inflation increase of 0.7 percent which will affect consumers in six to eight months.
“Not sure it will happen”
But there are divided opinions, at least according to Robert Bergqvist, economist at SEB.
– The situation is different today compared to what happened in recent years. Then there was room to raise prices, because demand was strong. Now the world is heading towards lower economic activity and lower demand. Then it becomes more difficult to pass on the cost increase to the customers. If so, the effect on inflation will be marginal.
The EU wants to start a defense unit
The US is currently leading a coalition to protect shipping in the area, but the Red Sea is particularly important to European trade and the EU is pushing to set up its own repository. The member states have given initial support to the plan, which will be discussed at the EU foreign ministers’ meeting on 19 February.
The rebels state that the attacks are taking place in solidarity with the Palestinians and in protest against the war between Israel and Hamas.