Retired Navy ship Cpt. Gene Moran examines the impact of vessels that are forced to find alternate routes around the Red Sea due to Houthi attacks.
Ikea is the latest major company whose operations have been impacted by the series of attacks on trade vessels in the Red Sea by Iran-backed Houthi rebels.
Inter Ikea Group told FOX Business in a statement that the situation in the Suez Canal — which connects the Mediterranean Sea to the Red Sea — will result in “delays and may cause availability constraints for certain Ikea products.”
The Suez Canal is the shortest shipping route between Europe and Asia. It is estimated that about 15% of world shipping traffic transits via the waterway.
The furniture giant is now being forced to evaluate “other supply options to secure the availability of our products” while it monitors the situation closely.
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In the meantime, the company said it has been in “close dialogue with our transportation partners to ensure the safety of people working in the IKEA value chain and to take all the necessary precautions to keep them safe.”
This IKEA store in Moscow, pictured here on July 5, 2022, closed in March shortly after Russia invaded Ukraine. (REUTERS/Evgenia Novozhenina / Reuters Photos)
The Houthis have been attacking cargo ships in an attempt to disrupt trade in the region and effectively halt Israel’s war against Hamas, which began on Oct. 7.
The Houthi attacks originating from Yemen prompted the U.S. and its allies to discuss a task force that would protect Red Sea routes. On Monday, Defense Secretary Lloyd Austin announced the formation of Operation Prosperity Guardian, a multinational security initiative that he said will focus on security in the Red Sea.
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The Navy’s USS Carney and USS Mason have already shot down multiple Houthi drones and deterred fast-attack vessels from approaching trading ships.
A map of the Red Sea. (Google Maps / Google Maps)
Still, global trade disruptions have arisen following the exodus of shipping companies from the Red Sea.
Major shippers including Maersk, which had a vessel targeted by anti-ship missiles last week, and BP said they are rerouting their vessels around the southern tip of Africa instead.
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Hapag-Lloyd, MSC and French shipping group CMA CGM also halted their operations in the area and are rerouting their ships.
FOX Business’ Anders Hagstrom, Bradford Betz and Breck Dumas contributed to this report.
