How companies are responding to attacks on ships in the Red Sea
Adds Next
March 22 (Reuters) -Companies are responding to disruptions to shipping on the shortest route between Europe and Asia.
Attacks in the Red Sea region by Houthi militants in Yemen have prompted several shipping companies to reroute vessels.
Below are details on how companies in various sectors are responding:
AUTOS
** GEELY 0175.HK: China's second-largest automaker by sales, said on Dec. 22 its electric vehicle (EV) sales would likely be impacted by a delay in deliveries.
** MICHELIN MICP.PA: the French tyre maker said on Feb. 12 logistics issues linked to the Red Sea crisis weighed on its finished product flows, mainly natural rubber, but that this would have a "reasonably marginal" effect on 2024 results.
** SUZUKI 7269.T: its Hungary production plant restarted manufacturing on Jan. 22 as planned following a halt since Jan. 15 due to delays in the arrival of Japanese-made engines.
** TESLA TSLA.O: the U.S. EV maker suspended most car production at its factory near Berlin from Jan. 29 to Feb. 11 due to a lack of components caused by shifts in transport routes.
** VOLVO CAR VOLCARb.ST: the Swedish automaker on Jan. 12 halted production at its Belgian plant for three days due to delays.
ENERGY
** BP BP.L: the oil major on Dec. 18 said it had temporarily paused all transits through the Red Sea.
** EQUINOR EQNR.OL: it said on Dec. 18 it had rerouted vessels that had been heading towards the Red Sea.
** EDISON EDNn.MI: the energy group's CEO said on Jan. 25 it was starting to experience a slowdown in liquefied natural gas (LNG) supplies from Qatar.
** QATARENERGY: The shipping disruptions will impact QatarEnergy's deliveries of liquefied natural gas but not its production, its CEO said on Feb. 12.
The company, one of the world's largest exporters of LNG, had stopped sailing via the Red Sea citing security concerns, a senior source with direct knowledge of the matter told Reuters on Jan. 15.
** SHELL SHEL.L: the British oil major suspended all shipments through the Red Sea indefinitely, the Wall Street Journal reported on Jan. 16. Shell declined to comment.
Its CFO said on Feb. 1 he was making day to day decisions on shipping through the Red Sea.
** TOTALENERGIES TTEF.PA: the French energy and petroleum company said on Feb. 7 it has not sent ships through the area for several weeks. Its CEO said the costs of going through the Red Sea have gone up, partly due to higher insurance costs.
** VALERO ENERGY VLO.N: the U.S. refiner said on Jan. 25 the Red Sea attacks have led to a rise in freight rates for crude oil.
LOGISTICS
** DHL DHLn.DE: the German logistic company, which does not operate ships but uses them to transport containers, on Jan. 8 advised customers to take a close look at how they manage inventories.
** FEDEX FDX.N: the U.S. parcel delivery giant said on Jan. 14 it hadn't seen much of a shift to air freight due to disruptions in the Red Sea.
RETAILERS
** ADIDAS ADSGn.DE: CEO said on Feb. 1 that shipping disruptions in the Red Sea were negative for gross margins, adding that "exploding" freight rates were driving up costs and shipping delays were causing some delivery issues. Adidas' working capital could be impacted as well if disruptions continue, its CFO warned on March 13.
** DANONE DANO.PA: 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, its spokesperson said.
** IKEA: the furniture retailer is sticking to planned price cuts despite increased costs, and has sufficient stocks to absorb any supply chain shocks, it said on Jan. 15.
** INDITEX ITX.MC, the owner of Zara clothing retailer, said average shipping times have been delayed by about a week by the Red Sea crisis, as container ships carrying its products avoid the Suez Canal and travel around the southern tip of Africa.
** JOHN LEWIS PARTNERSHIP: the British retailer's CFO said on March 14 it had seen delays to stock arrivals and a rise in freight charges, but that disruptions had not materially impacted its year to Jan. 27 results.
** MARKS & SPENCER MKS.L: the British retailer's CEO said on Jan. 11 the company is expecting some slight delay in clothing and home deliveries from disruption to shipping.
** NEXT NXT.L: the British clothing retailer, said on March 21 it had adjusted contract bookings to account for shipping delays, but added it did not expect a major hit from the Red Sea disruptions.
** PEPCO PCOP.WA: the Poundland owner warned on Jan. 18 its supply could be impacted in coming months if disruptions continue.
** PRIMARK: Associated British Foods' ABF.L finance director said on Jan. 23 Primark is coping with disruptions by adjusting timings and stock flow.
** SAINSBURY'S SBRY.L: "We're making sure that we plan the sequencing of product from Asia Pacific so that we get products in the right order," the company's CEO said on Jan. 10, adding that long term contracts with shippers "mitigate any cost impact as far as possible".
** TARGET TGT.N: the U.S. retailer is experiencing some disruptions of shipments from India and Pakistan, a source familiar with the matter said on Jan. 12, calling the effect "minor" overall.
** TRACTOR SUPPLY TSCO.O: deliveries for the U.S. retailer have been delayed anywhere from two to 20-plus days, the company's chief supply chain operator said on Jan. 12.
** WILLIAMS-SONOMA WSM.N: the Pottery Barn owner is rerouting shipments and has been working on contingency plans, its CEO told CNBC on Jan. 24.
OTHER
** AKZO NOBEL AKZO.AS: the Dutch paints and coatings maker's CFO said on Feb. 7 that longer supply lines and increasing costs could impact the company, which sources its raw materials from China.
"For us it's a working capital impact, but it's manageable," he added.
** BHP GROUP BHX.AX: the Australian mining giant on Jan. 25 said the disruptions were forcing some of its freight service providers to take alternative routes, such as Africa's Cape of Good Hope.
** BID CORPORATION BIDJ.J the South African food services company is stocking buffer inventory to help offset shipping delays, its CEO said on Feb. 21.
** BRENNTAG BNRGn.DE: the German chemicals distributor's CEO said on March 7 the Red Sea crisis had led to shipment times of an extra two-to-three weeks for the company's containers, as well as higher costs.
** ELECTROLUX ELUXb.ST: the Swedish home appliance maker has set up a task force to find alternative routes or identify priority deliveries to try to avoid disruptions.
On Feb. 2 its CEO said that costs related to the developments in the Red Sea were manageable. "If the situation is prolonged I am more worried about higher costs than about risk of having to pause production," he added.
** ESSITY ESSITYa.ST: the maker of brands such as Libresse and TENA said it was staying in contact with impacted suppliers to ensure continued flow of goods. On Jan. 25 its CEO said that it saw a negative impact on its freight costs but he could not specify what that impact would amount to.
** EVONIK EVKn.DE: the speciality chemicals maker said it was being hit by "short notice routing changes and delays", and was trying to mitigate the impact by ordering earlier and switching to air freight where possible.
** GECHEM GMBH & CO KG: the German chemicals maker said it had lowered production of dishwasher and toilet tablets as a result of the delays.
** KONE KNEBV.HE: the Finnish elevator maker said the situation may in some cases delay shipments, 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.
** LEVI STRAUSS & CO LEVI.N: the denim maker is experiencing delays of 10 to 14 days in transit times as a result of continued disruptions to Red Sea shipping. It has shifted some U.S. shipments to the West Coast, avoiding the Red Sea and Suez Canal.
** LOGITECH LOGN.S: the computer peripheral maker's CEO on Jan. 23 said profit margins will be hit by higher transport costs due to the Red Sea crisis.
FACTBOX-Shipping firms avoid Red Sea as Houthi attacks increase nL1N3DE06U
FACTBOX-Sectors most exposed to disruption from Red Sea attacks nL4N3DF3J2
Compiled by Izabela Niemiec, Paolo Laudani and Elsa Ohlen in Gdansk, Mrinalika Roy in Bengaluru; editing by Milla Nissi, Emelia Sithole-Matarise, Mark Potter, David Evans and Jane Merriman
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
