Factbox: How companies are responding to attacks on ships in the Red Sea
08/01/2024 14:07
(Updates Europris, adds DHL, Kappahl, Kid)
Jan 8 (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 company
spokesperson said, adding that so far it saw no need to be
concerned.
BASF BASFn.DE
The German chemical company does not see disruptions to raw
material supply or product distribution, but it's closely
monitoring the situation, a company spokesperson said.
BP BP.L
The oil major on Dec. 18 said it had temporarily paused all
transits through the Red Sea.
COVESTRO 1COV.DE
The German chemicals maker said any possible increases in
transit times would not impact its product supply.
DANONE DANO.PA
The French food group said in December that most of its
shipments had been diverted, which would increase 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 appliances maker set up a task force to
find alternative routes or identify priority deliveries to try
to avoid any disruption. 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 Swedish hygiene products maker is monitoring the
situation and staying in contact with impacted suppliers to
ensure continued flow of goods, The company sees a limited
impact as a low percentage of its supplies move through the Suez
Canal.
EUROPRIS EPR.OL
The Norwegian retailer, which imports 35-40% of goods sold
from Asia via sea freight, on Jan. 5 told Reuters it had not
considered other shipping options as this would increase costs.
Europris reiterated the longer shipping times were within
its safety margin and no significant challenges were expected,
adding that it saw no need to adjust the outlook due to its
fixed price agreement on sea freight for 2024.
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 of the shipping firms it uses to export EVs
to Europe sail around the Cape of Good Hope.
IKEA
The Swedish ready-to-assemble furniture retailer said on
Dec. 19 that 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 added.
KAPPAHL
The Swedish fashion retailer on Jan. 8 said it was affected
as it ships via Maersk MAERSKb.CO . "We expect some effects,
maybe some delays of new goods, but how large the effect will be
is still very uncertain," it told Reuters.
KEMIRA KEMIRA.HE
The Finnish chemicals company said on Dec. 19 that shipping
companies' decisions to reroute vessels would affect some of its
international routes, but not in any significant way at least in
the short term.
"There is currently spare capacity on the market and waiting
times at ports are reasonably good," a Kemira spokesperson said.
KID KID.OL
The Norwegian home decor retailer told Reuters on Jan. 5 it
saw no consequences for the stock in store, but added it was
unclear how the company would be affected. Kid said it did not
ship via Maersk.
KONE KNEBV.HE
The Finnish elevator maker said the situation may in some
cases delay shipments by 2-3 weeks, but a majority 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 the Cape of
Good Hope for now.
MEDIAMARKTSATURN
The German electronics retailer, and Ceconomy CECG.DE
unit, said on Dec. 21 it did not expect the situation to affect
its supply chain or availability of products during the
Christmas season.
"If the situation persists for longer, we cannot rule out
the possibility that we may also experience isolated effects on
the availability of goods in the medium term," it added.
MOSAIC MOS.N
The U.S. fertilizer company said on Dec. 18 it had rerouted
a couple of U.S.-bound shipments around the Cape of Good Hope.
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 around two weeks longer journeys, adding it had
not seen any problems so far.
VOLVO CAR VOLCARb.ST
The Swedish automaker told Reuters it was affected by the
shipping hindrances and was investigating the 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, but said the Red Sea was an important
supply route for it.
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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
urn:newsml:reuters.com:*:nL4N3DF3J2
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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))