Red alert in the Red Sea: Is nearshoring the answer?

Posted on 21 Mar 2024 by James Devonshire

The Bab al-Mandab Strait, a strategic link between the Mediterranean Sea and the Indian Ocean via the Red Sea and the Suez Canal; but it's also a shipping choke point

The current crisis in the Red Sea has led to significant shipping delays and severe price hikes. Such consequential supply chain disruption is causing many manufacturers to reconsider their inventory strategies. However, the present Houthi rebel attacks are just the latest chapter in the Red Sea’s troubled history, begging the question: should UK manufacturers be looking to nearshore going forward? The Manufacturer’s James Devonshire picks up the story.

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Key takeaways: 30% of global container trade passes through the Suez Canal. Diversions around the Cape of Good Hope adds around 4,000 miles and a 30% increase in transit times to every journey UK manufacturers have displayed their resilience throughout the current Red Sea crisis The situation in the Red Sea has accelerated nearshoring trends…