Houthi attacks in the Red Sea have disrupted supplies along a crucial global trade route, prompting businesses to rethink their logistics. The situation has been exacerbated by a drought impacting Panama Canal shipping and retaliation from a US-led coalition, adding to the region's instability. The Red Sea/Suez Canal, which handles 12% of worldwide trade and a third of global container traffic, is now seeing ships rerouted, adding 3,500 extra nautical miles via South Africa's Cape of Good Hope.
Despite these challenges, the food and beverage industry remains calm. Helen Dickinson, CEO of the British Retail Consortium, suggested that while there could be delays in supplies from the Far East, food imports, primarily from the EU, are unlikely to be affected. However, she warned of potential increases in transportation and shipping insurance costs leading to higher prices and availability issues.
Italian farmers' association Coldiretti expressed concerns about the crisis's impact on Italy's produce exports. Citing 2022 data, it revealed that Italy exported over 217,000 tons of fruit, mostly apples, to Asian countries. The blockade threatens Italian exports to China, worth more than €570 mln annually, with over 90% transported by ship.
Source: www.just-food.com