The IKEA logo outside the newly opened IKEA store in Xindian, New Taipei City, Taiwan, on May 18, 2019. Ikea said this week that supplies will be delayed because of Houthi action near the Suez Canal. File Photo by David Chang/EPA-EFE
Furniture leader Ikea announced Thursday that product supplies will be delayed because international shipments are being re-routed because of the shipping attacks by Houthi rebels on ships in the Red Sea near the Suez Canal.
The canal is one of the busiest merchant waterways in the country, but some of the largest cargo firms have opted to dodge it because of the threat Houthi rocket attacks present. The rebels said they are attacking ships in support of Hamas in its fight against Israel. Advertisement
Without the use of the canal, ships are forced to navigate around Africa around the Cape of Good Hope, adding about 3,500 nautical miles and about 10 extra days.
About $80 billion worth of cargo has already been diverted from the Red Sea to around Africa because of the Houthi attacks.
“The situation in the Suez Canal will result in delays and may cause availability constraints for certain Ikea products,” an Ikea spokesperson said.
Earlier this week, the United States unveiled a new multinational military initiative to counter rising attacks by Houthi militants targeting commercial shipping in the Red Sea. Advertisement
White House, national security adviser John Kirby said Operation Prosperity Guardian is underway as ships and aircraft “from multiple nations” are conducting maritime surveillance and will take defensive action to protect commercial ships.
