Filenews 28 February 2024 - by Simon Constable
The UK is already in technical recession, and the war in the Middle East is dealing it another blow: the British's favourite beverage is in short supply.
After Hamas attacked Israel and killed civilians on October 7, the war spread to the Middle East and the Red Sea: the gateway to the Suez Canal through which about 12% of world trade is traded.
While many Western democracies, including the United States, France and Germany, sided with Israel, the Iranian-backed Houthi rebels of Yemen, which borders the Red Sea, targeted merchant ships that would cross the Red Sea to reach the Suez Canal.
And therein lies the problem. One of the world's largest container shipping companies, Maersk, has announced that it will redirect its ships around Africa instead of operating their routes via Suez.
The journey from the Arabian Sea via the Red Sea and Suez to Rotterdam in the Netherlands usually took 19 days. Rotterdam is located on the North Sea opposite the United Kingdom. The itinerary of a ship departing from the Arabian Sea and crossing Africa normally takes 34 days, which is almost twice as long.
This major diversion multiplies the time it takes for goods to reach buyers in Europe. This condition particularly affects the UK, since its economic mix is 80% services and a much smaller proportion of manufactured goods.
The problem is not just the time for products to arrive in the UK, but rising costs for shipping activities. Merchant ships are usually chartered at the agreed price per day. The more days the trip lasts, the higher the cost. In addition, recent Houthi attacks, as well as older attacks by Somali pirates, have raised insurance premiums.
All these extra costs and long delays in deliveries are hitting British companies at a time when the UK economy is booming. The United Kingdom has shrunk in the last two quarters as well.
The BBC reported a few days ago that Tetley, one of Britain's biggest tea brands, was under pressure.
This development is a blow to the British economy. The British drink about 100 million cups of tea every day, according to the UK Tea and Beverage Association. Tea consumption exceeds that of coffee, which reaches 95 million. cups a day, according to Nestlé. And as we know, the British love tea.
I am convinced that the tea shortage in Britain will swell into an almost national crisis.
Performance – editing: Michalis Papantonopoulos
