Fishing company Brødrene Sperre notices financial consequences of the unrest in the Red Sea – news Møre og Romsdal – Local news, TV and radio

In recent months, the powerful Houthi militia has attacked both civilian and military ships in the Red Sea with missiles and drones. The many attacks in the Red Sea also have consequences in Norway. – We get significantly higher shipping costs, says fish seller Cecilie Tennebø in Ålesund. The Iran-backed militia says the attacks will continue as long as Israel continues its war on the Palestinian Gaza Strip. Norwegian ships have also been attacked. The situation has meant that many ships will not sail the shortcut through the Suez Canal, which connects the Mediterranean and the Red Sea. Instead, they choose a route around South Africa. A Houthi helicopter flies over a cargo ship in the Red Sea in November. The photo was provided to Reuters by the Houthi militia. Photo: Reuters via the Houthi militia / Reuters An American fighter jet prepares for an attack in the Red Sea. The image has been provided by the US Defense to the news agency AP. Photo: US defence, via AP / AP The US and the UK have responded by bombing a number of targets in Yemen. Cargo ships choose other and longer routes to avoid the attacks. It takes more time. And thus also costs more money. Noticing higher costs One of the companies noting it is the fishing company Brødrene Sperre, based on Ellingsøy in Ålesund. Cecilie Tennebø at Brødrene Sperre says they are affected by the situation in the Red Sea in several ways. Photo: Private – The lines will of course charge more when they go further around. In addition, it has increased financial costs for us, says fish seller Cecilie Tennebø. She says that it is difficult to say exactly how much more expensive it has become, because the size of the ship transport varies. – But we have to pay for the fish we buy right away. If we are going to finance it for an extra ten to fourteen days, then it will be extra expensive, she says. The Sperre brothers in Ålesund notice several consequences due to the situation in the Red Sea. Photo: Remi Sagen / news According to Tennebø, the situation in the Red Sea has meant that the delivery could be delayed for more than two weeks. As a result, it also takes longer before the fishing company receives payment from its customers. In Norway, seafood worth NOK 170 billion was exported in 2023, according to Norway’s Seafood Council. Møre og Romsdal is the county that accounts for the largest share of exports in the country. In 2022, nearly NOK 700,000 worth of seafood was exported per person living in the county, according to NHO. Global shipping routes Martin Skaug, director of communications at the Norwegian Seafood Council, believes that more people will feel the consequences of the attacks in the Red Sea if the situation continues. Martin Skaug, director of communications at the Norwegian Seafood Council. Photo: Norwegian Seafood Council – Norwegian seafood is a global commodity, much of it goes by boat and part of the shipping routes often go through the area where it is now difficult to navigate, he says. But they have not yet received feedback that others in the industry have been badly affected. Losing money on contracts It is not only delivery delays and increased shipping costs that are problematic for the company Brødrene Sperre in Sunnmøre. Tennebø explains that they are also losing money on the contracts that were entered into a long time ago. – We cannot recover the increased cost of them, she says. – How serious is the situation for you now, then? – Since we are not in a high season and the demand for raw materials is not that great, it is probably not the worst period to get the wheels turning. But if it lasts long, and we enter a new season, there could be major consequences, she says. The unrest in the Red Sea means that it has become more expensive to transport goods by sea. Photo: Kristine Urke Johansen / news The attacks, which according to the Houthi militia are a reaction to the attacks on Gaza, continued this week. The war started on 7 October last year, when Hamas attacked Israel, and has continued with Israeli attacks on Gaza since then. Over 28,000 people have been killed in Gaza, according to the health authorities there, which is controlled by Hamas. In Israel, around 1,200 people were killed on 7 October.



ttn-69