US-BASED retailers are raising economic red flags in anticipation of industry disruptions and looming 'uncertainty' as Iran-backed attacks rage on in the Red Sea, reports Fox News,
'It's a big issue,' National Retail Federation CEO Matt Shay said on 'Cavuto: Coast to Coast,' Monday. 'We're helped somewhat by the fact that this is a relatively slower time of year, but what goes on here is not just the increased cost, the increased delay, but it's really the uncertainty here as we look ahead to the future.'
Significantly delayed shipping times and pricing spikes could bleed into back-to-school and holiday shopping later this year as Iran-backed Houthi militants continue launching attacks in the Red Sea and Gulf of Aden.
Retailers are reportedly entering the renewal season for shipping contracts, and the conflict has now made it difficult 'to negotiate in an environment of uncertainty,' according to Mr Shay.
'We don't need this kind of disruption and uncertainty,' the CEO argued. 'We need to find a solution as quickly as possible.'
Mr Shay claimed a 'broader coalition' of countries may need to band together to mitigate timing delays and price increases - and that apparently includes China.
'The Chinese need to be part of this. They need to be talking to the people in the region, in Saudi Arabia and Iran and the rest of the Middle East saying, 'We need to fix this problem,' because they're impacted as well,' he explained. 'It's a global challenge and it's going to have implications here.'
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'It's a big issue,' National Retail Federation CEO Matt Shay said on 'Cavuto: Coast to Coast,' Monday. 'We're helped somewhat by the fact that this is a relatively slower time of year, but what goes on here is not just the increased cost, the increased delay, but it's really the uncertainty here as we look ahead to the future.'
Significantly delayed shipping times and pricing spikes could bleed into back-to-school and holiday shopping later this year as Iran-backed Houthi militants continue launching attacks in the Red Sea and Gulf of Aden.
Retailers are reportedly entering the renewal season for shipping contracts, and the conflict has now made it difficult 'to negotiate in an environment of uncertainty,' according to Mr Shay.
'We don't need this kind of disruption and uncertainty,' the CEO argued. 'We need to find a solution as quickly as possible.'
Mr Shay claimed a 'broader coalition' of countries may need to band together to mitigate timing delays and price increases - and that apparently includes China.
'The Chinese need to be part of this. They need to be talking to the people in the region, in Saudi Arabia and Iran and the rest of the Middle East saying, 'We need to fix this problem,' because they're impacted as well,' he explained. 'It's a global challenge and it's going to have implications here.'
SeaNews Turkey
