Factbox: How companies are responding to attacks on ships in the Red Sea
22/01/2024 15:05
(Adds Evonik, Gechem, Suzuki)
Jan 22 (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.
The United States and Britain launched air strikes against
Houthi military targets overnight on Jan. 11 and 12, widening a
regional conflict stemming from Israel's war in Gaza.
Below are some companies' responses to the disturbances (in
alphabetical order):
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, its spokesperson said.
DHL DHLn.DE
The German logistic company, which does not operate ships
but uses them to transport containers, had on Jan. 8 advised
customers to take a close look at how they manage inventories.
Its CEO said on Jan. 17 that the diversion of freight could lead
to a shortage of shipping containers in Asia in the coming
weeks.
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.
EVONIK EVKn.DE
The speciality chemicals maker said it was being hit by
"short notice routing changes and delays", and was trying to
mitigate the impact by ordering earlier and switching to air
freight where possible.
FEDEX FDX.N
The U.S. parcel delivery giant said on Jan. 14 it hasn't
seen much of a shift to air freight due to disruptions in the
Red Sea.
GECHEM GMBH & CO KG
The German chemicals maker said as a result of the delays,
it has lowered production of dishwasher and toilet tablets
because it can't get enough trisodium citrate, and sulfamic and
citric acid. The company is reviewing its three-shift system,
CEO and owner Martina Nighswonger said.
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," 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.
MICHELIN MICP.PA
Four factories in Spain owned by the French tyre maker were
planning to halt output on Jan. 20-21 due to delays in the
delivery of raw materials, the company's Spanish subsidiary said
on Jan. 16.
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.
PEPCO PCOP.WA
The Poundland owner warned on. Jan. 18 its supply could be
impacted in coming months if disruptions continue. There is a
limited impact on product availability currently, it said.
QATARENERGY
The world's second largest exporter of liquefied natural gas
has stopped sending tankers via the Red Sea although production
continues, a senior source with direct knowledge of the matter
told Reuters on Jan. 15.
SAINSBURY'S SBRY.L
"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, adding that long term contracts with
shippers "mitigate any cost impact as far as possible".
SHELL SHEL.L
The British oil major suspended all shipments through the
Red Sea indefinitely, the Wall Street Journal reported on Jan.
16, citing people familiar with the decision. Shell declined to
comment.
SUZUKI 7269.T
Suzuki's Hungary's production plant restarted manufacturing
on Jan. 22 as planned following a halt since Jan. 15 due to
delays to the arrival of Japanese-made engines. It said shipping
routes were changed to pass around Africa, which could affect
pricing.
TARGET TGT.N
The U.S. retailer is experiencing some disruptions of
shipments from India and Pakistan, a source familiar with the
matter said on Jan. 12, calling the effect "minor" overall.
TESLA TSLA.O
The U.S. EV 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.
TRACTOR SUPPLY TSCO.O
Deliveries for the U.S. retailer have been delayed anywhere
from two to 20-plus days, the company's chief supply chain
operator said on Jan. 12.
VOLVO CAR VOLCARb.ST
The Swedish automaker said on Jan. 12 it would halt
production at its plant in Belgium for three days due to delays
caused by the situation in the Red Sea.
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FACTBOX-Shipping firms avoid Red Sea as Houthi attacks increase
urn:newsml:reuters.com:*:nL1N3DE06U
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 Milla Nissi and Emelia Sithole-Matarise)
((izabela.niemiec@thomsonreuters.com;
paolo.laudani@thomsonreuters.com))