IKEA and Electrolux products are late, cargo ships are avoiding Africa

Regular attacks by Houthi rebels in Yemen against merchant ships in the Red Sea have a serious impact on shipping. To avoid the Suez Canal, more and more cargo ships are choosing to bypass Africa, resulting in longer voyages and rising costs. The seriousness of the situation is shown by the fact that more than a hundred attacks have been launched against commercial ships in the last twenty months alone.

Due to the diverted ships, the costs of sea freight are rising sharply. According to the Drewry consultancy, the price of container shipping has almost doubled since the end of November. The increase is mainly evident in the relations between Asia and Europe, and further increases are expected in the coming weeks due to the situation in the Red Sea.

According to calculations by Oxford Economics, if cargo ships have to avoid the Red Sea and the Suez Canal for longer, it could increase global inflation by 0.6 percentage points annually. Even greater growth is expected in Europe. Several companies, including IKEA and Electrolux, have warned of delays for some products due to supply chain issues.

Houthi rebels have been attacking commercial ships plying the Red Sea since the Gaza war. In the conflict, the Houthis, supporting the Palestinians, also targeted Israeli cities with ballistic missiles. Yemen’s civil war, which has been going on for nearly ten years, is a Saudi-backed conflict between government forces and Iran-backed rebel groups.