EU retailers call for action to resolve Red Sea crisis

The European retail association EuroCommerce has called on the EU to take action to resolve the crisis in the Red Sea. With such statement EuroCommerce, which has its headquarters in Brussels, contacted the Belgian Foreign Minister Hadja Labib. The statement noted that the crisis in the Red Sea, where trade routes pass, has already had a “severe impact” on business.

The association represents the interests of 5 million retailers in 27 countries of the European Union, from large chains Tesco, Lidl, Carrefour, M&S, Inditex, H&M to small retailers. EuroCommerce reminds that the route through the Red Sea and the Suez Canal is “extremely important.” “It handles 12% of global trade, about $1 trillion, including critical goods for the European economy, industrial and commercial activities and everyday life,” the statement said.

The authors of the document indicate that ongoing attacks by Yemen’s Houthis on merchant ships passing through the Red Sea threaten crews and cargo, which is why cargo operators are forced to redirect ships along other, longer routes. This not only delays the delivery of goods, but also increases their cost, taking into account fuel consumption, insurance and increased labor costs. And all these problems, EuroCommerce notes, could get worse if attacks on ships continue. In this regard, the association called on “EU institutions and member states to further intensify and coordinate efforts to resolve the situation.”

Alena Miklashevskaya