Europe 1 with AFP 18:49 p.m., December 21, 2023
Swedish furniture giant Ikea is anticipating possible delays in the delivery of some products or their absence from the shelves due to the situation in the Red Sea, it said on Thursday.A recent wave of attacks on ships in the Red Sea by the Houthis, in response to Israeli bombardment of the Gaza Strip, threatens to disrupt global trade flows as major shipping firms have cut off passage through the Bab el-Mandeb Strait.
They reoriented their ships around the southern tip of Africa, resulting in a much longer voyage. "The situation in the Suez Canal will cause delays and could lead to availability constraints for some Ikea products," the Swedish group wrote in a message to AFP.
"We are evaluating other procurement options"
The Red Sea is a "highway of the sea" connecting the Mediterranean to the Indian Ocean, and thus Europe to Asia. About 20,000 ships pass through the Suez Canal each year, another gateway for ships entering and exiting the Red Sea.
"We are in close dialogue with our transport partners to ensure the safety of people working in Ikea's supply chain," the group added. "We are evaluating alternative sourcing options to ensure the availability of our products and continue to monitor the situation closely," Ikea said.
The group reiterates that it does not own any container ships. According to the International Chamber of Shipping (ICS), 12% of world trade passes through the Red Sea.