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Japan's top shipping companies suspend Red Sea routes amid Houthi attacks

Japan's top shipping companies suspend Red Sea routes amid Houthi attacks

Posted on January 22, 2024   |  

3 big shipping companies—Nippon Yusen, Kawasaki Kisen Kaisha, and Mitsui O.S.K Lines—stopped using the Red Sea for safety reasons, worrying about the impact on prices for UK shoppers.

The Red Sea, usually a super busy trade route, is now seeing more ships go elsewhere, affecting global supply chains. 

This is a problem, especially for businesses that rely on getting their supplies just in time for manufacturing and making cars.

Industries like manufacturing and car-making, which need expensive parts, could face big problems if the Red Sea remains off-limits for shipping.

Japanese companies with offices in the UK might face delays in getting goods, which could create more issues across Europe.

To deal with the world becoming more uncertain, businesses are trying out new ways of trading online to be stronger and more resilient.

Because rebels in Yemen have been attacking ships in the Red Sea, the US and the UK are bombing those rebels, which prompted shipping companies to take longer routes, making deliveries take more time.

The Red Sea usually handles a lot of world trade, about 12%. With ships now going around Africa instead, it's costing more money for fuel and people, and it might mean people who ordered things won't get them on time.