Ikea has warned that the disruption to global trade caused by Yemeni rebel attacks in the Red Sea could delay its deliveries and affect availability of some products.
The world’s largest furniture company said it was “evaluating other supply options to secure the availability of our products” after many big shipping companies stopped sending vessels through the Suez canal in response to the attacks by Houthi militants’ protests against the Israel-Gaza war.
On Monday, the oil company BP joined the sea freight firms Evergreen, OOCL, Maersk, CMA CGM, Hapag-Lloyd and the Mediterranean Shipping Company in suspending operations in the key waterway linking the Indian Ocean with Europe.
By Wednesday, more than 100 container ships had been rerouted around southern Africa to avoid the area, a trip that adds about 6,000 nautical miles to a typical journey from Asia to Europe and potentially three or four weeks to product delivery times.
“The situation in the Suez canal will result in delays and may cause availability constraints for certain Ikea products,” the retailer said. “We are in close dialogue with our transportation partners to ensure the safety of people working in the Ikea value chain and to take all the necessary precautions to keep them safe.”
The problems will not affect deliveries before Christmas, which arrived more than a month ago, but could squeeze spring trade if not resolved shortly.
Several retailers said it was not yet clear how or if deliveries would be affected. There are fears that the problems could renew pressure on inflation, which has fallen to 3.9% in the UK. The disruption has already pushed up oil prices.
Helen Dickinson, the chief executive at the British Retail Consortium, said:
“While the latest challenges through the Red Sea could mean some delays on the supply of products coming from the far east, it will not have any impact on Christmas gifts, which are already in the UK.
“Over the coming months, some goods will take longer to be shipped, as they are redirected via longer routes and there could be a knock-on impact on availability and prices as a result of higher transportation and shipping insurance costs.”
About 19,000 ships navigate the Suez canal every year, making it one of the world’s key trade routes, particularly for oil and gas, and goods moving between Asia and Europe. However, the disruption comes at a time when many factories shut down temporarily for Christmas, giving some extra time for the arrival of crucial supplies.
The US said on Tuesday it would try to lead a naval coalition to protect shipping in the canal.
Maersk said it had paused about 20 vessels bound for the Red Sea area to protect the safety of crews, vessels and cargo, and that they would be rerouted around Africa via the Cape of Good Hope “as soon as operationally feasible”. It said that urgent cargo bound for Europe could be switched to air or rail.
