Responses of Shipping Companies
Various companies have responded to these disturbances, each taking appropriate measures to address the situation:
AB FOODS
The Primark-owner, AB FOODS, is closely monitoring the situation. While the company’s supply chains have the flexibility to make adjustments, it currently sees no cause for concern.
BASF
BASF, the German chemical company, has not experienced any disruptions in its supply of raw materials or product distribution. However, it continues to monitor the situation closely.
BP
On December 18, BP announced a temporary halt to all transits through the Red Sea due to the attacks.
COVESTRO
COVESTRO, the German chemicals maker, stated that any potential increases in transit times would not impact its product supply. However, if the situation persists beyond 2-3 months, the company will activate mitigation plans, including utilizing alternative sea or road routes whenever feasible. Currently, COVESTRO foresees only a limited impact on its deliveries.
EQUINOR
The Norwegian oil and gas firm, EQUINOR, rerouted its vessels that were originally headed towards the Red Sea on December 18.
ESSITY
ESSITY, the Swedish hygiene products maker, is closely monitoring the situation and maintaining contact with affected suppliers to ensure a continuous flow of goods. However, due to only a small percentage of its supplies passing through the Suez Canal, ESSITY anticipates a minimal impact.
EUROPRIS
EUROPRIS, a Norwegian retailer that imports 35-40% of its goods from Asia via sea freight, supports the decision of shipping companies to reroute vessels. Europris deems the longer shipping times to be within its safety margin, and does not expect any significant challenges.
GEELY
China’s second-largest automaker, GEELY, disclosed on December 22 that the delay in deliveries caused by rerouting shipments around the Cape of Good Hope is likely to impact its electric vehicle sales to Europe.
IKEA
IKEA, the Swedish furniture retailer, anticipates delays and potential availability constraints for certain products due to the situation in the Suez Canal. The company is currently exploring alternative supply options to ensure product availability.
KEMIRA
KEMIRA, the Finnish chemicals company, acknowledges that shipping companies’ decision to reroute vessels around the Cape of Good Hope will affect some of its international routes. However, KEMIRA has prepared for these disruptions by seeking alternative delivery methods and routes.
LIDL
Tailwind Shipping Lines, a subsidiary of German discount supermarket chain LIDL that transports non-food goods, is currently sailing around the Cape of Good Hope to mitigate the effects of the disruptions.
MEDIAMARKTSATURN
MEDIAMARKTSATURN, the German electronics retailer and Ceconomy subsidiary, stated on December 21 that it does not expect the situation to impact its supply chain or product availability during the Christmas season. However, if the situation persists, the company cannot rule out the possibility of isolated effects on goods availability in the medium term.
MOSAIC
The U.S. fertilizer company, MOSAIC, has rerouted some of its shipments around the Cape of Good Hope to avoid the impacted areas.
TSMC
TSMC, the world’s top contract chipmaker, assures that its operations will not be significantly affected by the disruptions. The company has established an enterprise risk management system and conducted an assessment to anticipate potential impacts.
VOLKSWAGEN
VOLKSWAGEN, the German carmaker, projects an additional two weeks of travel time due to rerouted shipments. However, the company does not anticipate any impact on its ability to achieve global wholesale and production targets.
WHIRLPOOL
WHIRLPOOL, the appliances maker, remains vigilant in monitoring logistics issues in the Red Sea, the Suez Canal, and the wider region to mitigate risks as they arise. At present, there have been no impacts on their business.
YARA
YARA, the Norwegian fertilizer maker, considers the Red Sea a crucial supply route. Although mildly impacted by the current transit challenges, the company is closely monitoring the situation.