Daily Management Review

EC: Cost of supplies from Asia increased by 400% due to attacks in the Red Sea


The escalation in the Red Sea has resulted in a 10-15 day increase in delivery times from Asia to Europe, according to European Commissioner for Economic Affairs Paolo Gentiloni. Transport expenses have increased by 400%.

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Defense Visual Information
"Due to the redirection of shipments from the Red Sea, delivery times between Europe and Asia have increased by 10-15 days and their cost has increased by 400%," said Gentiloni in a press conference.

The European Commissioner thinks that more disruptions will result in higher prices, but he hopes that this won't cause the EU's inflation rate to rise significantly.

In December 2023, there was a rise in the shelling of foreign ships in the Red Sea. This occurred in the midst of an ongoing conflict between Israel and the Houthi-backed Palestinian Hamas movement. US and UK forces have hit Houthi sites in Yemen on many occasions. The Ansar Allah movement has sworn to keep assaulting British and American ships.

source: reuters.com