Next PLC, a British clothing seller, has issued a trading update warning of potential disruptions to its supply chains and delays in deliveries to the U.K. caused by attacks on cargo ships in the Red Sea by the Houthis. The vital shipping lane that leads to the Suez Canal, through which the ships travel, has been targeted by Yemeni militants.
According to Next CEO Lord Wolfson, if the attacks continue, deliveries to the U.K. could be delayed by up to two-and-a-half weeks. This, in turn, could have an impact on the company’s sales. However, Lord Wolfson stated that the impact would not be at dramatic levels.
The Houthis, a Shia political group controlling a significant portion of Yemen, initiated their attacks on container ships in November as a response to Israel’s attacks on Gaza. In December, they announced their intention to block the navigation of any ships headed to Israel and declared that any vessel bound for an Israeli port would be a legitimate target.
As a result of these threats, major shipping companies such as Maersk, CMA CGM, Mediterranean Shipping Company (MSC), and Hapag-Lloyd have rerouted their ships to travel around the Cape of Good Hope in South Africa, avoiding the Red Sea.
In response to the attacks, U.S. forces have started targeting Houthi vessels, leading to the sinking of three ships and the deaths of 10 fighters from the Yemeni group.
