Key takeaways:
- Ikea has warned of possible shortages of some of its products due to the mass diversion of shipping containers from the Red Sea over safety concerns.
- At least $80 billion worth of cargo has already been diverted from the waterway which provides access to Egypt’s Suez Canal.
- The Houthi threat in the Red Sea has caused major disruption to international shipping, and Ikea is the latest company to be affected by the security concerns in the region.
Ikea has warned of possible shortages of some of its products due to the mass diversion of shipping containers from the Red Sea over safety concerns.
The Red Sea is one of the world’s busiest trade routes, and a number of major container carriers are diverting shipments from a key waterway that leads to the Suez Canal due to a series of attacks on vessels by Houthi militants from their bases in Yemen.
At least $80 billion worth of cargo has already been diverted from the waterway which provides access to Egypt’s Suez Canal, the quickest passage between Europe and Asia, due to a wave of drone and missile attacks by Yemen-based Houthi militants.
Ikea has said that the situation in the Suez Canal will result in delays and may cause availability constraints for certain IKEA products. A spokesperson said that the safety of staff working in its supply chain was its priority, and it was evaluating other options to secure the availability of products.
The Houthi threat in the Red Sea has caused major disruption to international shipping, and Ikea is the latest company to be affected by the security concerns in the region. It remains to be seen how long the delays will last, and what the full impact of the Houthi threat will be.
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