Ikea Says Product Delays Possible Due to Attacks on Shipping Vessels Near Red Sea

Furniture giant Ikea said "the situation in the Suez Canal" could result in delays and may cause availability constraints for some of its products, due to recent attacks by the Houthi militant group on ships passing through the Red Sea.

"We are 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," the Scandinavian company said in a statement emailed to The Messenger.

Ikea did not provide details on which of its products pass through the Red Sea or what markets they are bound for. But China is one of the company’s top suppliers, and about 60% of China’s exports into Europe pass through the Suez Canal in the Red Sea, according to the Middle East Institute. When a ship got stuck in the canal in 2021, temporarily halting traffic, Ikea said 110 of its containers were caught in the jam, the Telegraph reported.

Since Israel launched its war in Gaza in response to the Oct. 7 attacks by Hamas, Yemen-based Houthi rebels — a militant group backed by Iran — has claimed responsibility for at least three attacks on vessels associated with Israel. U.S. military officials claim the Houthis are responsible for over 100 drone and ballistic missile attacks targeting 10 merchant vessels.

The escalating attacks pose a threat to the 10% to 15% of all global trade that passes through the Red Sea each year.

Ikea's statement follows earlier announcements from other companies including BP, Maersk and Evergreen Line that they are pausing operations in the Red Sea due to the attack on ships.

The company said it is closely monitoring the situation and is currently evaluating alternative supply options.