Ikea cautions customers about product delays due to the Red Sea attacks

Ikea has issued a warning about possible delays to its products due to attacks by Houthi rebels on ships travelling to the Suez Canal. These attacks have escalated since the start of the conflict between Israel and Hamas in October. The rebels, who are backed by Iran, have been using drones and rockets to target foreign-owned vessels transporting goods through the Bab al-Mandab strait. As a result, some companies have been forced to re-route their cargo to avoid these attacks. In response to the situation, Ikea is exploring alternative options to ensure that its products remain available to customers. The company is in discussions with its shipping providers to ensure safe transportation. However, the supply chain research company Project 44 has warned that bypassing the Suez Canal will add a delay of 7-10 days to shipping routes, with potential product shortages on shelves by February. The British Retail Consortium's director of Food and Sustainability, Andrew Opie, stated that although the crisis would not affect the holiday season as products are already in the UK, goods may take longer to ship in the future. Longer shipping routes will also increase costs, which could impact prices. For example, shipping analysts Xeneta estimate that each journey between Asia and Northern Europe could incur an additional $1 million in expenses, which would ultimately be passed on to consumers. Other companies, such as Electrolux and Danone, are closely monitoring the situation and working with their carriers to assess potential impacts on their supply chains. In response to the attacks, the US has initiated an international naval operation to safeguard ships in the Red Sea route, with several other countries joining the effort. However, shipping firms are unable to determine when it will be safe to resume using the Suez Canal, which may prolong the disruption.