FAMILIES will face higher prices on the back of disruption to shipping in the Red Sea, experts warn.
The threat from Houthi rebels means vessels are steering clear of the area — adding up to ten days to sailing times.
Shipping companies are upping their prices, with one of the biggest, Maersk, adding a $500 per customer surcharge.
Fashion retailer Next, Ikea and appliance supplier Electrolux have warned of delays in deliveries.
And industry experts warn extra costs will ultimately be passed on to shoppers with higher prices.
It is a setback in the fight against inflation— just as price rises were beginning to ease.
Scott Whiffin, executive director at supply chain group Scala, said: “As a result of these diversions, we could well see knock-on impacts across shipping timescales, the supply of stock, and the price of goods to the consumer in turn.”
However, some are reaping the rewards. London-listed shipbroker Clarkson said its profits would rise to at least £108million this year, pushing its shares up by eight per cent.
ASDA BE WAR
ASDA is launching a price match promotion against discounters Aldi and Lidl to try to boost sales.
It will drop the cost of 287 products by an average 17 per cent.
Sainsbury’s and Tesco have had success with similar schemes, yet Aldi and Lidl enjoyed the fastest growing sales over Christmas.
BARS’ PAY KO
PUB group Revolution Bars has blamed staffing costs for its decision to shut eight venues, despite its best Christmas in four years.
Bosses said the wage bill hike meant it could not afford to keep unprofitable bars open.
Even with a festive sales jump, they said, revenues have fallen over six months.