Sweden’s Electrolux has set up a task force to find alternative routes or identify priority deliveries, as companies scramble to avoid any disruption from the attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea.
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 Suez Canal. Electrolux said late on Monday 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 per cent of the world’s shipping traffic. Defence secretary Lloyd Austin said on Tuesday 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 container shipping capacity available, analysts do not see as severe a crunch, but they do expect freight rates to rise.
