Factbox: How companies are responding to attacks on ships in the Red Sea
12/01/2024 08:44
(Adds Tesla)
Jan 12 (Reuters) - Attacks on vessels by Iranian-backed
Houthi militants in Yemen have disrupted international commerce
on the shortest shipping route between Europe and Asia.
The attacks, targeting a route that accounts for about 15%
of the world's shipping traffic, have pushed several shipping
companies to reroute their vessels.
Below are companies' responses to the disturbances (in
alphabetical order):
AB FOODS ABF.L
The Primark-owner is monitoring the situation, but its
supply chains are capable of some adjustment, a spokesperson
said, adding that so far it saw no need to be concerned.
BP BP.L
The oil major on Dec. 18 said it had temporarily paused all
transits through the Red Sea.
DANONE DANO.PA
The French food group said in December that most of its
shipments had been diverted, increasing transit times. Should
the situation last beyond 2-3 months, Danone will activate
mitigation plans, including using alternate routes via sea or
road wherever possible, a spokesperson said.
DHL DHLn.DE
The German logistic company, which does not operate ships
but uses them to transport containers, on Jan. 8 advised its
customers to take a close look at how they manage inventories.
ELECTROLUX ELUXb.ST
The Swedish home appliance maker has set up a task force to
find alternative routes or identify priority deliveries to try
to avoid disruptions. It sees a limited impact on deliveries for
now.
EQUINOR EQNR.OL
The Norwegian oil and gas firm on Dec. 18 said it had
rerouted vessels that had been heading towards the Red Sea.
ESSITY ESSITYa.ST
The maker of brands such as Libresse and TENA said it was
staying in contact with impacted suppliers to ensure continued
flow of goods, but added the impact on its business was limited.
EUROPRIS EPR.OL
The Norwegian retailer, which imports 35-40% of goods sold
from Asia via sea freight, on Jan. 5 said it had not considered
other shipping options as this would increase costs. It said
longer shipping times were within its safety margin and no
significant challenges were expected.
GEELY 0175.HK
Geely, China's second-largest automaker by sales, said on
Dec. 22 its EV sales would likely be impacted by a delay in
deliveries, as most shipping firms it uses to export EVs to
Europe reroute ships around Africa.
IKEA
The Swedish ready-to-assemble furniture retailer on Dec. 19
said the situation would result in delays and may cause
availability constraints for certain products. "We are
evaluating other supply options to secure the availability of
our products," it said.
KONE KNEBV.HE
The Finnish elevator maker said the situation may in some
cases delay shipments, but most of its customer deliveries
should stay on schedule. Kone said it had prepared for the
disruptions by seeking alternative delivery methods and routes.
LIDL
Lidl unit Tailwind Shipping Lines, which transports non-food
goods for the discount supermarket chain and goods for
third-party customers, said it was sailing around Africa for
now.
MOSAIC MOS.N
The U.S. fertilizer company said on Dec. 18 it had rerouted
a couple of U.S.-bound shipments around Africa.
NEXT NXT.L
The British clothing retailer's CEO on Jan. 4 said sales
growth would likely be moderated if disruptions continued
through 2024. He said Next, which sources the majority of its
products from Asia, could mitigate this through earlier ordering
or using some air freight.
SAINSBURY'S SBRY.L
Britain's second largest grocer said on Jan. 10 it was in
regular contact with the UK government about the Red Sea
disruptions.
"We're making sure that we plan the sequencing of product
from Asia Pacific so that we get products in the right order,"
CEO Simon Roberts said, noting that long term contracts with
shippers "mitigate any cost impact as far as possible".
TESLA TSLA.O
The U.S. electric vehicle maker will suspend most car
production at its factory near Berlin from Jan. 29 to Feb. 11
due to a lack of components caused by shifts in transport
routes, it said on Jan. 11.
TSMC 2330.TW , TSM.N
The world's top contract chipmaker said on Dec. 19 it did
not anticipate a significant impact on its operations.
VOLKSWAGEN VOWG_p.DE
The German carmaker on Dec. 20 said rerouting of shipments
would result in longer journeys, but it had not seen any
problems so far.
VOLVO CAR VOLCARb.ST
The Swedish automaker said it was affected by the
disruptions and was investigating their potential impact, but
saw no impact on its ability to reach global wholesale and
production targets.
WHIRLPOOL WHR.N
The appliances maker said in December it was closely
monitoring logistics issues in the region to help mitigate risks
as they arise, adding there was no impact to its business so
far.
YARA YAR.OL
The Norwegian fertilizer maker told Reuters it was only
mildly impacted for now, though the Red Sea is an important
supply route for the company.
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FACTBOX-Shipping firms avoid Red Sea as Houthi attacks increase
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FACTBOX-Sectors most exposed to disruption from Red Sea attacks
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(Compiled by Izabela Niemiec and Paolo Laudani in Gdansk;
editing by Ed Osmond and Milla Nissi)
((izabela.niemiec@thomsonreuters.com;
paolo.laudani@thomsonreuters.com))