Analysis: Prices may increase due to Red Sea attacks
A Us-led group attacked Houthi rebel sites after the group launched a spate of attacks on cargo ships in the Red Sea in recent weeks.
Butwhatwilltheeffectbeon consumer prices and retailers’ ability to obtain goods usually shipped from Asia?
What is happening in the Red Sea?
The UK and US hit more than a dozen sites used by the Houthi rebels in a massive retaliatory strike on Thursday last week after a spate of 27 attacks on shipping since November.
The Islamist group, based in Yemen, claims it began striking a narrow strip of sea between Yemen and east Africa, which is a key international trade route, in a bid to end Israel’s air and ground offensive against Hamas .
Why is the Bab El-mandeb Strait and the Suez Canal such a key trade route?
Geography. The Bab El-mandez Strait is a 20-mile-wide, 70-mile long, narrow passage of water between the Horn of Africa and the southern tip of the Arabian Peninsula that forms the southern entrance to the Red Sea from the Gulf of Aden.
Several billion tonnes of cargo passes along this route every year, making it one of the most critical maritime routes enabling global trade.
What has the impact of the conflict been on trade?
Some owners of shipping containers, such as Maersk and Hapag-lloyd, have moved their vessels to a longer route around Africa's Cape of Good Hope rather than through the Bab El-mandeb Strait and Suez Canal in the wake of increased attacks in December.
This is a costly decision, with the route taking on average ten days longer and costing around $1 million [£790,000] extra in fuel costs for each one-way trip between Asia and Europe.
Some companies, including Tesla, Next and Ikea, have already said they are experiencing delays on goods arriving from Asia into Europe.
Shipping insurance is also rising.
What will the impact be for consumers in the UK?
These added costs will likely be passed down to the consumer.
The British Retail Consortium has already warned the disruption could have a knock-on effect on product availability and prices in the UK.