Houthi Attacks Supply Chains 2024-01-25
2024-01-25
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Global shipping traffic and trade volumes are heavily reliant on the Red sea, which is facing disruptions. This has potential impacts on UK supply chains.
What steps her Department is taking to help protect supply chains in the context of the disruption to trade in the Red sea?
My Department is monitoring the impact closely. We published the world's first ever critical imports and supply chains strategy, making the UK Government the centre for supply chain analysis and risk assessment to support reliable and secure supply chains vital for national security and essential services.
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Assessment & feedback
Specific steps or mechanisms to address Red Sea disruptions were not detailed
Response accuracy
Q2
Partial Answer
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The UK is the eighth largest manufacturer, with Birmingham being a key centre. The question concerns advice to Andy Street about supporting businesses in overcoming difficulties.
What advice is my hon. Friend giving to people such as Andy Street about what can be done to support businesses in the west midlands to overcome temporary difficulty?
I am happy to discuss supply chain reporting with the Mayor. We have worked with industry, including in automotive, to ensure flexibility and resilience in supply chains. Concerns about extended routes from that part of the world into Europe are noted.
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Assessment & feedback
Specific advice or actions were not detailed
Response accuracy
Q3
Partial Answer
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Context
Recent developments in the Red sea are causing concerns due to potential security issues and increased shipping costs, which could lead to inflation.
Can the Minister build on her answer by reassuring businesses that we will do all we can to maintain the flow of goods?
The UK stands up for free navigation and takes seriously threats to shipping vessels. We note a 124% increase in freight rates, hence producing a strategy and setting up a council to work with industry for resilient supply chains.
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Assessment & feedback
Specific measures to mitigate cost increases were not detailed
Response accuracy