Yemen Conflict Threatens Fashion Supply Chains, May Lead to Higher Prices
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Shipping delays of up to 2 weeks for major fashion brands like Zara, H&M due to attacks on ships in Red Sea by Yemen's Houthis seeking to deter military shipments to Israel.
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Rerouting ships around Africa's southern tip can add weeks to travel times and $1 million in extra fuel costs per roundtrip.
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Delays could be "disastrous" for fast fashion that depends on 8-10 week design-to-sale turnaround. Brands considering pricier air freight to avoid delays.
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12% of global trade passes through Red Sea each year. Disruptions already increasing shipping rates from Asia to Europe by over 200% since mid-December.
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If situation continues, customers may face price increases and brands face negotiations on more expensive shipping contracts. Retailers trying to mitigate impact.