IKEA, the Swedish furniture giant, has cautioned customers about possible delays in receiving furniture due to issues stemming from the Red Sea. The company cited concerns over the situation in the Suez Canal, indicating that this could lead to delays and potential limitations in the availability of certain IKEA products.
Photo © Gordon Tipene | Dreamstime.com
Global shipping firms have been rerouting vessels away from the region following recent attacks on commercial ships, creating logistical challenges. While IKEA hasn't specified which products might be affected, it sources from China, a country whose goods often traverse the Suez Canal, a crucial passage linking Asia and Europe.
The situation has prompted shipping companies to seek alternative routes to bypass the Red Sea. However, these detours around Africa are anticipated to add approximately two weeks to shipping times, resulting in increased operational costs.
IKEA, which doesn't own its container vessels, is also exploring alternative supply options to ensure product availability while prioritising the safety of its workforce within the value chain.
The disruptions in the Red Sea pose a significant threat to Europe's supply chain, given that more than a tenth of global trade relies on the Red Sea and Suez Canal.
Source: www.finance.yahoo.com