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Walmart, H&M, and IKEA will suffer losses caused by the blockage of the Suez Canal



Many retailers from around the world have reported problems resulting from the Suez Canal blockage.
Suez Canal - Depositphotos

Although the 400-meter container ship Ever Given, which blocked the Suez Canal for almost a week, managed to get off the shoal on Monday, March 29, the consequences of this incident will be felt for several months by the global economy, the losses of which are estimated in the billions of dollars. About 370 ships carrying an incredible amount of cargo of all kinds were forced to delay six days at once, which means inevitable disruptions to the supply of goods.

Many major companies, such as IKEA, have confirmed that they expect disruption in shipments due to delayed en route containers.  According to analytical company Panjiva, among the most affected by the interruption in retailers' supply was PVH Corporation. The company manages such brands as Tommy Hilfiger, Calvin Klein, and several others. Walmart and H&M informed that their supply chains were also affected due to the blockage. In the case of Walmart alone, the number of containers delayed on the road reached 11,780 units. In H&M, the number is not so significant but also impressive - 2,580 containers.

It is expected that the cafes and restaurants, construction industry, wholesale trading companies, companies trading in chemical products, health care sector, retail companies, including food products, and companies in the market of industrial and commercial equipment will suffer most from the incident. Businesses in several European countries, including the UK, Germany, Belgium, France, and the Netherlands, will be particularly affected. The problems on the other side of the ocean, in the United States, will not be as huge, but they will also be quite tangible.

But the problem is not just a one-time container delay. It will take some more time before the usual flow of goods is back on track. Until then, interruptions in the supply of various goods can be an expected thing.

Photo credit: depositphotos.com.

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