Before Thomas O'Brien, the owner of the British family business Boxer Gifts, a 250% cost increase is a stark reality. Based in Leeds, the company primarily designs games and seasonal gifts, with its products manufactured in China, making it heavily reliant on global shipping. However, as commercial vessels passing through the Red Sea have faced frequent attacks over the past month, forcing ships to take longer detours to avoid one of the world's busiest shipping routes, the challenges for Boxer Gifts have intensified.

European business owners have widely stated in interviews with the media that the Red Sea crisis will inevitably lead to delays in transportation and rising prices.The MaritimeThe interruption could lead to a chain reaction to product supply and price.Helen Dickinson, CEO of the association, noted that this is a direct result of rising transportation and transportation insurance costs, and that some cargo transportation times will be significantly extended in the coming months.

Guy Platten, Secretary-General of the International Maritime Federation, has previously warned that the real impact may not be fully reflected until the end of January. At present, the main source of the Red Sea crisis is the Houthi group in Yemen, which has announced its support for Hamas and said its attacks targeted ships that travel to Israel through the Red Sea. While it is not clear whether all of the ships attacked were to Israel, frequent attacks have led to the world’s largest shipping companies including Mediterranean Shipping and Maersk to abandon the traditional routes that travel through the Suez Canal, instead of choosing to circumvent Africa.

O'Brien pointed out that this has led shipping companies to successively increase container freight rates. For Boxer Gifts, the freight costs have surged by 250% over the past two weeks. The company stated that it will absorb the continuously rising costs as much as possible, but if freight rates continue to climb, it will have no choice but to pass on the costs. Additionally, delays in goods are becoming an issue, which could result in shipments being postponed by two to three weeks, potentially missing the prime sales windows of Valentine's Day and Mother's Day.

German shipping giant Herbert said it will continue to avoid the Red Sea route at least until January 9. The company has about 50 ships a month passing through the Suez Canal, with about 25 ships already transitioning in the second half of December, and the current decision is expected to affect at least 15-20 ships.

The world’s two largest shipping companies, Mediterranean Shipping and Maersk, have suspended the route to the Red Sea until a separate notice. France’s Dauphine Maritime announced that it will increase container shipping charges from Asia to the Mediterranean region to 100% more than on January 1.

For O'Brien, the economic losses caused by continuous disruptions could amount to hundreds of thousands of pounds. His greatest concern is not just the financial issue, but the potential disappointment of customers due to delayed shipments. He stated that compared to short-term monetary losses, the damage to reputation lasts much longer.

Rachael Waring, an operator of a furniture trade enterprise, also faced similar difficulties. Some of her customers faced the problem of missing goods because the container failed to pass through the Red Sea before Christmas. Waring said the shipping fee for paying for a container has recently tripled and is expected to rise further.

“For customers, the future must consider the increase in transportation costs, which will obviously bring new problems to inflation,” she added.