The strike has forced ships to change routes, causing major disruption to companies' production chains.
Attacks on ships by Yemen's Houthi rebels in the Red Sea have disrupted international trade on the shortest sea route between Europe and Asia.
The attack was carried out in solidarity with Palestinians facing Israeli shelling in the Gaza Strip, and targeted shipping routes that account for about 15% of global shipping traffic, with multiple shipping companies has been forced to reroute ships.
The Houthi attack has forced several commercial ships transiting the Suez Canal and Bab al-Mandeb Strait to take a much longer alternative route around South Africa's Cape of Good Hope, causing major changes and delays. There is.
Here's how the Houthi attacks have affected major companies.
car
- Geely: China's second-largest automaker by revenue said on December 22 that its electric vehicle (EV) sales are likely to be affected by delivery delays.
- Michelin: Four factories in Spain owned by the French tire maker suspended production from January 20 to 21 due to delays in the delivery of raw materials.
- Suzuki: The company's Hungarian production plant resumed production as scheduled on January 22, following a suspension the previous week due to delays in the arrival of Japanese engines. The company said the shipping route has been changed to take it around Africa, which could affect prices.
- Tesla: The U.S.-based electric car maker will halt most vehicle production at its factory near Berlin from January 29 to February 11 due to parts shortages due to changes in transportation routes.
- Volvo: The Swedish automaker announced on January 12 that it would halt production at its Belgian plant for three days due to delays.
energy
- blood pressure: The oil major announced on December 18 that it had temporarily suspended all shipping through the Red Sea.
- Equinor: On December 18, the company announced that it had rerouted a ship headed for the Red Sea.
- Edison: The energy group's CEO said on January 25 that liquefied natural gas (LNG) supplies from Qatar are starting to slow down.
- Energy in Qatar: The world's second-largest LNG exporter has stopped sending tankers through the Red Sea, although production continues, a person with direct knowledge of the matter told Reuters on January 15.
- shell: The Wall Street Journal reported on January 16 that the British oil major has indefinitely suspended all shipping via the Red Sea.
- Valero Energy: US refiners announced on January 25 that the Red Sea attacks had led to higher crude oil rates.
logistics
- DHL: On January 8, a German logistics company that does not operate ships but uses them to transport containers advised its customers to carefully consider how they manage their inventory.
- FedEx: The US parcel delivery giant said on January 14 that it does not see a major shift to air transport due to the Red Sea disruption.
Retail company
- Adidas: Chief Executive Officer Bjorn Gulden said on February 1 that transport disruptions in the Red Sea were negative for gross margins, with “explosive” freight rates driving up costs and transport delays leading to deliveries. He added that it was causing some problems.
- Danone: The French food group said in December that a large portion of its shipments had been diverted, increasing transit times. If the situation persists for more than two to three months, Danone will activate mitigation plans, including the use of alternative routes, the spokesperson said.
- IKEA: The company announced on January 15 that it is sticking to its planned price cuts despite rising costs and has enough inventory to absorb supply chain shocks.
- Marks & Spencer: The British retailer's CEO said on January 11 that he expected some delays on clothing and home deliveries due to transport disruptions.
- Next: The British clothing retailer's chief executive said on January 4 that sales growth is likely to slow if the disruption continues into 2024.
- Pepco: Poundland's owners warned on January 18 that supply could be affected in the coming months if the disruption continues.
- Primark: The head of finance at Associated British Foods said on January 23 that Primark was managing the disruption by adjusting timing and stock flows.
- Sainsbury's: “We plan the order of goods from the Asia-Pacific region to ensure they arrive in the correct order,'' the company's CEO said, adding that long-term contracts with shippers allow “to reduce costs.'' “We will reduce the impact as much as possible,” he added. .
- the goal: The U.S. retailer is experiencing some disruptions to shipments from India and Pakistan, sources said on Monday, adding that the overall impact is “minor.”
- Tractor supply: The company's head of supply chain operations said on January 12 that deliveries to U.S. retailers have been delayed by anywhere from two to more than 20 days.
- Williams Sonoma: Pottery Barn owners have changed shipping routes and are working on contingency plans, the CEO told CNBC on Jan. 24.
others
- BHP Group: The Australian mining giant said on January 25 that the disruption was forcing some freight service providers to use alternative routes, such as Africa's Cape of Good Hope.
- Electrolux: The Swedish consumer electronics maker has set up a task force to find alternative routes and identify priority deliveries to avoid disruption. On February 2, the company's CEO said costs associated with the Red Sea development were manageable. “If the situation persists, I would be more concerned about rising costs than the risk of having to suspend production,” he added.
- Essence: The manufacturer of brands such as Libress and TENA said it was continuing to communicate with affected suppliers to ensure the continued distribution of goods. The company's CEO said on January 25 that freight rates have been negatively impacted, but could not specify the extent of the impact.
- Evonik: The specialty chemicals maker said it had been affected by “short-notice rerouting and delays” and was trying to mitigate the impact by ordering early and switching to air transport where possible.
- Gechem GmbH & Co KG: A German chemical manufacturer said it had cut production of dishwasher and toilet tablets due to delays.
- Connection: The Finnish elevator maker said most deliveries to customers should be on schedule, although shipments could be delayed depending on the situation. Cohn said it prepared for the disruption by exploring alternative delivery methods and routes.
- Levi Strauss & Company: Denim manufacturers are experiencing delays in transit times of 10 to 14 days as a result of continued disruption to Red Sea shipping. Some U.S. cargo was moved to the West Coast, avoiding the Red Sea and Suez Canal.
- Logitech: The computer peripherals maker's CEO said on January 23 that its profit margins would be hit by higher shipping costs due to the Red Sea crisis.