Electrolux joins foods giant Danone in exploring diverting shipping from Red Sea and Suez Canal
The guided-missile destroyer USS Carney. The American warship and multiple commercial ships came under attack earlier this month in the Red Sea, the Pentagon said.
Sweden's Electrolux has joined foods giant Danone and container shipping company Maersk to to find alternative routes or identify priority deliveries to try to avoid any disruption from the attacks on ships in the Red Sea that may prevent access to the Suez Canal.
The world's top appliance maker is the latest company to act after recent attacks on vessels forced leading shipping companies including Maersk to reroute around the Cape of Good Hope to avoid the canal.
Electrolux said it was considering the measures, but it currently estimates the impact on deliveries will be limited. The Swedish group has worked with shipping companies such as Maersk and CMA.
The Suez Canal, the shortest shipping route between Europe and Asia, accounts for about 12% of the world's shipping traffic. US defence secretary Lloyd Austin said the US was leading a multinational operation to safeguard commerce in the Red Sea.
The attacks have stirred memories of 2021, when container ship Ever Given ran aground in the canal, blocking dozens of container ships carrying products ranging from mobile phones to designer goods for six days.
The episode aggravated supply strains caused by the coronavirus pandemic, delaying shipments of goods by months and sending freight rates soaring.
Now, with more shipping capacity available, analysts and experts do not see as severe a crunch, but they do expect freight rates to rise.
Delays to shipments will not affect Christmas shopping, but there is the potential for shops to run low on stock by February if the delays continue, supply chain research firm Project44 has said.
"After the peak shopping season through the holidays, it is possible that inventories will be depleted," it said.
Travelling via southern Africa will add about 10 days on to a journey from Asia to North Europe and the East Mediterranean, experts said. It typically takes about 27 days to sail from Shanghai in China to the Dutch port of Rotterdam.
Dairy giant Danone said most of its shipments had been diverted, increasing transit times. Should the situation continue beyond two to three months, the group will activate mitigation plans, including using alternate routes.
US fertiliser company Mosaic said it had re-routed a couple of US-bound shipments around the Cape of Good Hope.
• Reuters




