From Investing.com:

Retailers worldwide are preparing for a potential disruption in the supply chain as they stock up on goods before China’s Lunar New Year holiday. Major container ship operators are rerouting vessels from the Red Sea, the shortest route from Asia to Europe, due to militant attacks. They are turning to rail and air transportation, which is more expensive and adds time to the journey. Retailers are taking unusual steps, such as front-loading orders and relying more on alternative shipping routes to mitigate potential delays.

In a bid to avoid empty shelves this spring, companies are seeking alternative transportation for goods before the Lunar New Year holiday and cutting their dependence on China by sourcing more from Vietnam and Turkey. Retailers are impacted as vessels are rerouted from the Suez Canal and will likely face delays as fewer ships will be back in China in time to load cargo before the holiday. The disruptions have already led to a container shortage at Ningbo port in China. The prospect of supply chain strains possibly pushing up prices has raised fears of another bout of global inflation. Retailers are considering alternative transportation methods, such as rail and air, but the high cost means they must prioritize certain products.

The disruptions have raised fears of another prolonged disruption to global trade just as supply chains unsnarl after the COVID-19 pandemic. Going around southern Africa instead of cutting through Egypt adds $1 million in fuel costs and about 10 days to the journey. This could hurt retail companies as they prepare for possible delays on products meant to land on Western shelves in April or May. Retailers are also mitigating the delays by ordering earlier and using more air freight. For some companies, the disruptions highlight the need to permanently shift supply chains so factories are closer to the end consumer, a process often called “near-shoring”.



Read more: Retailers rush to avoid delays to spring collections due to Red Sea attacks By Reuters