Malaysians to pay more for gourmet food and wine, as import costs surge amid Red Sea crisis

Imports to Malaysia are being delayed by up to two weeks as shipping giants shift freight routes to avoid possible attacks in the Red Sea

Some shipping rates have shot up by more than 600 per cent since the war in Gaza broke out, with those increased costs being passed on to consumers

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A cargo ship is escorted by Houthi boats in the Red Sea. Photo: Houthi Military Media/Handout via Retuers

Published: 4:30pm, 20 Jan 2024Updated: 6:46pm, 20 Jan 2024

Malaysians will likely have to pay more for imported luxuries such as wine and gourmet food shipped from Europe, as experts warn of the risk of wider inflation as Houthi militants continue to choke off the crucial Red Sea shipping lane, forcing vessels to travel further to and from Asia.

For months, the Houthis – an Iran-backed rebel group in Yemen – have been targeting ships seen as linked to the United States and other nations allied with Israel.

The Houthis say their rocket, drone and speedboat raids on container ships passing the narrow neck of sea around Yemen are an act of solidarity with Palestinians in the Israel-Gaza war.

Shipping giants have shifted freight routes to the Cape of Good Hope around the southern tip of Africa to avoid possible attacks in the Red Sea.

Container shipping rates over the Asia-Europe route have shot up by more than 600 per cent since the war in Gaza broke out, according to data from the Maybank Investment Banking Group (MIBG), leaving little room for importers in Malaysia to keep costs down.