Ikea warns of product delays after Red Sea attacks

Ikea has warned of product delays following rebel attacks on ships using the key Red Sea trade route.

Houthi militants in Yemen have stepped up attacks on vessels since the start of the Israel-Hamas war in October.

Iran-backed rebels have used drones and rockets to attack foreign-owned vessels transporting goods through the Bab al-Mandab Strait and the Suez Canal.

It has forced a number of companies to re-route cargo around Africa's Cape of Good Hope, adding days to journeys.

A spokesperson for Ikea said: "The situation in the Suez Canal will result in delays and may cause availability constraints for certain IKEA products."

They added said the firm was looking for other options to ensure its products will be available to customers.

Project 44, the supply chain research company, said avoiding the Suez Canal will add up to 10 days to shipping routes, and items could start to be missing from shelves by February.

Andrew Opie, the British Retail Consortium's director of food and sustainability, told the BBC the current crisis would not have any effect on the holiday season as those products are already in the UK, but warned: "In the longer term, some goods may take longer to be shipped, as they are routed via longer routes."

As well as delays to products, longer journeys will increase shipping costs which could have an impact on prices that customers pay.

Shipping analysts Xeneta estimate every journey between Asia and Northern Europe could cost an extra $1m. "This is a cost that will ultimately be passed on to consumers who are buying the goods," said Peter Sand, chief analyst at Xeneta.

Other brands are keeping a close eye on the region.

Electrolux has set up a taskforce with their carriers to look at a number of measures including "re-routing, identifying extra time-sensitive deliveries and finding alternative routes, if needed".

It said it expected any knock-on effect on deliveries to be limited. Dairy giant Danone told the BBC that it was working with suppliers and partners to closely monitor the situation.

The attacks have led the US to launch an international naval operation to protect ships in the Red Sea route, and countries including the UK, Canada, France, Bahrain, Norway and Spain have joined.

Shipping firms have welcomed the plans but can not yet determine when it will be safe to resume using the Red Sea, which could mean the disruption continues for some time.