Global companies are looking for alternatives for their supplies due to security problems in the Red Sea
Kyiv • UNN
Due to threats from Yemen's Houthi rebels, companies are rerouting shipments to avoid the Red Sea and Suez Canal, leading to delays and potential shortages for companies such as IKEA and Volvo.
The threat of attacks on civilian ships by the Iranian-backed Houthi movement has led to the following large trading companies have changed the routes of their ships, temporarily abandoning from the routes through the Suez Strait. This was reported by UNN with reference to Reuters and Dagens Nyheter.
Details
The Suez Canal, which connects the Mediterranean Sea to the Red Sea via eastern Egypt, is an important transport route in world trade, but recent attacks on maritime vessels by the Houthis from Yemen have clearly disrupted international trade on the shipping lane between Europe and Asia.
To date, the reaction of a number of To date, the reaction of a number of global companies is as follows:
1. Swedish furniture giant IKEA warns of delays and possible shortages in the supply of of goods.
The way the situation now, the situation in the Suez Canal will cause delays and this may affect the availability of certain IKEA products,
2. The French food group DANONE said that most of its shipments have been redirected, which will lead to an increase in transit time. If the situation continues for more than 2-3 months, the group will activate mitigation plans, including the use of alternative routes by sea or road.
3. Volvo Cars is busy reorganizing the route. The situation risks being more complicated than the crisis of freight transportation in 2021, according to freight transportation expert Anders Leisner, recalling how the 400-meter container ship Ever Given ran aground in the Suez Canal and blocked traffic through it.
This time, we have a political dimension and an element of violence, and finally, a military situation, which complicates the situation
4. Finnish chemicals company KEMIRA said on December 19 that the decision of shipping companies to divert ships around the Cape of Good Hope will affect some of its international routes, but not significantly, at least in the short term.
Currently, there is spare capacity on the market, and waiting time in ports is quite good
5. The shipping company Tailwind Shipping Lines, a division of the German discount supermarket chain LIDL. supermarket chain LIDL, which transports non-food and third-party customers, has reported that it is currently sailing around the Cape of Good Hope.
6. The company Whirlpool is closely monitoring logistical issues in the Red Sea, the Suez Canal and the Canal and the region as a whole to help mitigate risks as they arise.
7. Norwegian retailer EUROPRIS, which imports 35-40% of its goods sold from Asia by sea transport, told Reuters that it supports the decision of shipping companies to to change the route of ships.
8. German chemical manufacturer COVESTRO chemicals manufacturer COVESTRO said that any possible increase in delivery time delivery time will not affect the supply of its products.
9. The oil company BP (BP.L) said, that it has temporarily suspended all transits through the Red Sea.
10. Irish retailer Primark is monitoring the situation, but its supply chains are subject to to some changes.
READ ALSO: EU has disbursed the last tranche of the macro-finance to Ukraine for 2023 in the amount of EUR 1.5 billion.
Recall
Last week, the Houthi group Houthi group operating in Yemen attacked two cargo ships in the Red Sea in the Bab al-Mandeb Strait. Sea in the Bab al-Mandeb Strait.
The United States announced the launch of Operation Prosperity Guardian, a multinational a multinational initiative to secure shipping in the Red Sea from Houthi attacks.
READ ALSO: Oil rises in price amid tensions in the Red Sea after Houthi attacks
