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Businesses 'counting cost of volcanic ash cloud'

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Businesses 'counting cost of volcanic ash cloud'

Monday, 19/4/2010 11:11
The Icelandic volcanic ash cloud that has brought a halt to flights across Europe could have a major impact on businesses and consumers, experts have warned.

According to the Freight Transport Association (FTA), retailers and transport firms across the UK could be left counting the cost as the ash continues to make its way across Europe.

The group warned that shoppers could see depleted shelves in supermarkets by as early as next week as flight restrictions prevent the shipping of fresh produce and other goods.

While air freight is only involved in the transport of less than one per cent of products, it represents around a quarter of the overall value when measured by volume, meaning the level of disruption could be huge.

"The longer that UK airspace is closed for business, the greater the damage, not just to businesses here, but also for farmers in the developing countries who rely on exporting their produce to Europe," said FTA head of global supply chain policy Christopher Snelling.

The eruption of the Eyjafjallajokull volcano in south-east Iceland last week sent a plume of ash across much of Europe, bringing widespread disruption to the airline industry.

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