The Association of European Retailers is waiting for a solution to the Red Sea crisis

The organization addressed a letter to the Belgian Minister of Foreign Affairs, in view of the fact that Belgium will take over the EU presidency in the first half of 2024. According to Ecommerce, the adverse effects are already visible as a result of drone and missile attacks by the Yemeni Houthi rebels forcing container ships to detour around the southern part of Africa. As a result, the delivery time from Asia to Europe is extended by 2-3 weeks, which complicates the efficient operation of supply chains. It also increases costs, which could threaten the downward trend in consumer inflation in Europe.

The call for Ecommerce is particularly serious given that the organization includes leading European department store chains such as Lidl, Tesco and H&M. Overall, retailers expect the EU to take decisive and coordinated action as a matter of urgency to ensure the safety of shipping on the Red Sea-Suez Canal route. Addressing the transport crisis is of utmost importance, as the long-term effects of the problem affect European retail chains and inflation indicators.