Increased costs and delays of up to four weeks for UK businesses and manufacturers are the effects of ongoing attacks in the Red Sea.

Through a survey by the British Chambers of Commerce (BCC), it was found that more than half of UK businesses are being impacted, including retailers and exporters.

The BCC has said that the consequences could lead to a rise in prices in the whole UK economy.

BCC head of trade policy, William Bain, said: “There has been spare capacity in the shipping freight industry to respond to the difficulties, which has bought us some time. And recent Office for National Statistics data also indicates the impact has yet to filter through to the UK economy, with inflation holding steady in January. But our research suggests that the longer the current situation persists, the more likely it is that the cost pressures will start to build.

“Certain sectors of the economy are obviously more exposed to this than others. But with the recent introduction of the government’s new customs checks and procedures for imports also adding to costs and delays, it is a difficult time for firms.

“The UK economy saw a drop in its total goods exports for 2023 and, with global demand weak, there is a need for the government to look at providing support in the March Budget.

“We are calling for the establishment of an Exports Council to hone the UK’s trade strategy and a review of the effectiveness of government funding for export support.

“Overseas trade is vital to growing our economy. We must do everything we can to see businesses through these tough times and then set a laser-sharp focus on expanding exports for the future.”

It was found that the cost of shipping container higher has risen by 300% for some companies. Delays were the consequence of the need to divert shipments around Southern Africa.

The attacks were by the Iran-backed Houthis in the midst of the Israel-Hamas conflict which began in October. The group said it was supporting Hamas by targeting ships linked to the UK, US and Israel.