Pepco is already ordering for Christmas due to the attacks on the 20th

By: Trademagazin Date: 2024. 07. 16. 10:26

The Red Sea, one of the world’s most important trade routes, is facing serious security challenges after Yemen’s Houthi rebels attacked merchant shipping, prompting several shipping lines to adjust routes in response. Pepco Group is handling the situation proactively: the company has already ordered Christmas shipments from China, ensuring that the goods arrive in time for the key holiday period.

Yemen’s civil war, which has been raging since 2014, involves fighting between Houthi rebels and the internationally recognized government. The Houthi, who control a large part of the country, have repeatedly attacked Israel and seized merchant ships. This situation further complicates global trade routes, especially the Red Sea, which plays a key role in shipping between Asian and European markets.

In the quarter ended in June, Pepco Group’s total revenue increased by 8 percent year-on-year, which is partly due to the opening of new stores. However, excluding new stores, revenues fell by 4.3 percent, which the company attributed to supply chain disruptions. Despite the crisis, according to the company’s expectations, EBITDA will increase by 20 percent to 900 million euros by the end of the business year.

Global impacts of the crisis include more cargo ships taking the route around Africa, increasing fuel costs and prices, putting further pressure on retail prices and consumers. Adriatic ports are the biggest losers, as container shippers often turn to Western Europe to cut costs.