There could be a serious shortage of goods in Europe because of the Houthi terrorists in Yemen

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Several retail giants, including Tesco, Marks & Spencer and IKEA, have also issued warnings in connection with the case. Price increases are inevitable, and a shortage of goods on the shelves can pose a serious challenge to players in the FMCG sector. Due to the shutdown of Suez Canal traffic and the instability of the region, companies have to adapt to the new situation.

Due to the unpredictable attacks of the Houthi rebels in Yemen, the possibility of military interventions also arose, thereby making the trade routes even more uncertain. Companies are looking for new shipping routes, and some of them have already rearranged their procurement strategy towards the Cape of Good Hope.

Rising transport and logistics costs, rising container rental costs and price hikes are impacting global FMCG trade. Rising oil prices will further exacerbate the situation, and rising fuel prices could lead to further price increases.