# Factbox-How companies are responding to attacks on ships in the Red Sea Published: 2024-01-09 Category: Headlines Category URL: https://assetdigest.com/category/headlines/ Meta Title: How Companies Respond to Red Sea Attacks: Updates Meta Description: Learn how major companies like AB Foods, BP, and IKEA are navigating disruptions caused by attacks on vessels in the Red Sea and adjusting their supply chains accordingly. URL: https://assetdigest.com/factbox-how-companies-are-responding-to-attacks-on-ships-in-the-red-sea/ ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qsx4iq004fwirg99umbncl/images/2023-12-20t144611z1lynxmpejbj0h4rtroptp4israel-palestinians-shipping-companies-1737054888088-compressed.webp) ## Factbox-How companies are responding to attacks on ships in the Red Sea (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 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. BP The oil major on Dec. 18 said it had temporarily paused all transits through the Red Sea. DANONE 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 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 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 The Norwegian oil and gas firm on Dec. 18 said it had rerouted vessels that had been heading towards the Red Sea. ESSITY 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 due to the low number of supplies moving via the Suez Canal. EUROPRIS 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 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 sail around the Cape of Good Hope. 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 The Finnish elevator maker said the situation may in some cases delay shipments by 2-3 weeks, 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 the Cape of Good Hope for now. MOSAIC The U.S. fertilizer company said on Dec. 18 it had rerouted a couple of U.S.-bound shipments around Africa. NEXT 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. TSMC, The world’s top contract chipmaker said on Dec. 19 it did not anticipate a significant impact on its operations. VOLKSWAGEN 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 The Swedish automaker told Reuters 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 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 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. (Compiled by Izabela Niemiec and Paolo Laudani in Gdansk; editing by Ed Osmond and Milla Nissi) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---