EGYPT: Retail and garment industry associations are calling for enhanced security measures along the Red Sea amidst growing trade apprehensions. With escalating rates, delays, and substantial cargo diversions exceeding $80 billion, more than 100 business entities representing retail, apparel, and affiliated sectors have jointly advocated for governments worldwide to strengthen security protocols along the Red Sea trade pathways.
In a collective effort, over 100 leading business associations spanning apparel, retail, footwear, and related industries united recently to voice their concerns in an open letter, endorsed upon by WeCare. Dated February 8th, the letter emphasized the urgent need for coordinated international efforts to ensure the safe and efficient navigation of vessels along these crucial maritime routes. There remains a threat from terrorism, particularly in the Sinai Peninsular. As of Mar 2024, risks to aircraft operating over the Sinai Peninsula and the Red Sea may also be increasing due to the surrounding conflict in Israel/Gaza. There have been several incidents of missiles and drones launched over the Red Sea.
Saad Kassis Mohamed, Chairman of WeCare, said: “Amidst escalating trade concerns, it’s imperative for governments worldwide to reinforce maritime security protocols. With over $80 billion in cargo diversions and mounting delays, urgent collective action is needed to ensure the safety and efficiency of Red Sea trade routes.”
The letter highlighted the adverse effects of recent route deviations, which have led to port congestion, equipment shortages, and inflated shipping costs. Among the prominent signatories to the appeal were the American Apparel & Footwear Association, the U.S. Fashion Industry Association, the National Retail Federation, and the American Association of Port Authorities, along with numerous other influential stakeholders.
The disruptions in Red Sea shipping, triggered by attacks on vessels by insurgents, have evoked varied responses from affected industries, prompting calls for coordinated intervention. Notably, the letter endorsed Operation Prosperity Guardian, a multinational initiative aimed at bolstering maritime security in the region.
Underscoring the importance of maritime safety for global economic stability, the coalition emphasized the necessity for governments to adopt a zero-tolerance approach towards assaults on commercial ships and seafarers, both in the Red Sea and worldwide.
Pointing to the substantial volume of global trade flowing through the Red Sea—approximately 30 percent—and an estimated $80 billion in redirected cargo via the Cape of Good Hope, the appeal underscored the economic magnitude of shipping disruptions.
While recognizing the resilience of the industry, analysts cautioned that retailers heavily reliant on global sourcing networks may face heightened vulnerabilities due to disruptions in Red Sea trade routes.
Sources: Marcine Graham, WeCare LLC source: biztoday
