IKEA’s shipping strategy during the Houthi attacks is a clear example of supply chain resilience at its best.
At a time when carriers refused to travel these routes, insurance premiums spiked and transit times stretched by weeks, the company ensured its supply chain could deliver despite one of the sharpest shocks in recent Red Sea history.
This piece explores how IKEA rode out the Houthi attacks in the Red Sea, what it cost, and how supply chain teams—especially in Africa—can copy the logic, even on a smaller budget.
Key Nuggets:
- IKEA remained resilient during the Houthi attacks by leveraging early inventory, Cape of Good Hope rerouting, and strong carrier ties.
- The IKEA supply chain absorbed the higher freight costs and longer lead times, but shielded customers from price spikes and major stock gaps.
- African supply chains can copy the playbook by mapping chokepoints, building seasonal buffers, diversifying routes and ports, and treating safety as non-negotiable.
How Conflict in the Red Sea Hit IKEA’s Shipping Strategy
The Red Sea and the Suez Canal form a critical artery of global commerce, normally carrying about 12% of world trade and roughly 30% of global container traffic.
But the Houthi attacks in the southern Red Sea turned the Bab el-Mandeb Strait and the Suez route into a shooting range for commercial ships. Missiles, drones, and high-profile hijacks raised the risk for any vessel moving between Asia and Europe.
Major container lines reacted by pausing sailings through the Red Sea and sending ships around Africa instead.
For IKEA, that lane was important because it carried a big share of imports from Asian factories to Europe and the Middle East.
Normal voyages through Suez already compressed lead times for IKEA and 19,000 other ships. So, once vessels had to round the Cape of Good Hope, the shipping process gained 10–14 extra days, sometimes more.
That shift reset the clock on almost every container heading toward European distribution centres.
Read More: Lessons From Domino’s Autonomous Delivery Program.
The Shipping Strategy That Helped IKEA Navigate the Houthis’ Disruption
IKEA’s supply chain navigated the Houthis’ crisis through a disciplined shipping playbook. Here is what that playbook looks like:
Stock Was Already in Place For The Holidays
IKEA avoided empty shelves by stocking up for the holidays. The company had shipped its seasonal goods before the conflict escalated, which gave its furniture retail logistics team time to react without risking Christmas sales.
That meant that the real threat was the spring of 2024 stock, which was in the line of fire for delays. But by the time those items were scheduled, IKEA had already changed course.
Routes Changed, But Flow Continued
Freight still moved, just not through the Suez Canal. IKEA worked with carriers to adjust schedules and keep containers sailing through the Cape.
When needed, it used alternative modes of transport, such as air freight, for high-priority goods, similar to what brands like Abercrombie & Fitch did to protect seasonal sales. There was no panic in the routing strategy—just realism and calm swaps that matched risk levels.
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Supplier and Partner Coordination
IKEA increased communication with its suppliers and freight forwarders to stay agile. Shippers were advised to work closely with logistics providers during the Red Sea crisis to navigate the constantly evolving situation.
IKEA, not owning its own ships, relied on its contracted ocean carriers for updates on convoy schedules, naval escort availability, and safe transit windows. So, the company increased communication with its suppliers and freight forwarders to stay agile.
Safety and Risk Management
Above all, IKEA emphasized the safety of its people and goods. The company’s stance was to not take undue risks with shipments or crews, instead tolerating longer lead times. This meant instructing any ships carrying IKEA containers to avoid high-risk waters even if it caused delays.
Although in practice, some carriers, like CMA CGM, continued to offer limited Red Sea service only under naval escort convoys.
Read More: Lessons From Coca-Cola Sabco’s Supply Chain Innovations in East Africa.
Impact Of IKEA’s Shipping Strategy
Although the Houthi disruption threatened to derail IKEA’s supply chain and those of other companies, IKEA’s shipping strategy set it apart.
Higher Shipping Costs Did Not Break Operations
Freight forwarders estimated that each round-trip from Asia to Europe around the Cape of Good Hope burned up an additional $1 million in fuel. Instead of slashing services or cancelling shipments, IKEA accepted thinner margins, which kept stores stocked, while other brands ran out of stock, especially in Europe and the Middle East.
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Shipments Were Delayed, But Disruption Was Minimal
Longer routes meant that some spring 2024 inventory hit stores later than expected. But because IKEA had already stocked up for winter, those delays didn’t choke sales. Staff warned customers, and stores shifted displays for a few weeks. The impact stayed manageable.
Brand Strength Grew in The Gap
Many retailers raised prices during the Red Sea disruption. IKEA didn’t. It held to the planned 2024 price drops, using lower material costs to offset higher transport charges, which earned the company more trust and probably more future customers.
Read More: How Kraft Heinz’s Supply Chain Ensured Resilience During the Pandemic.
Lessons From IKEA’s Shipping Strategy During The Houthi Crisis
IKEA’s handling of the shipping crisis caused by the Houthis offers several actionable lessons for supply chain professionals and global retailers:
1. Build Alternative Routes Before You Need Them
Conflict, congestion, strikes, and even weather can turn a reliable path into a liability. Before that happens, map your critical supply lanes and identify fallback options now—not later. Even a slower or more expensive backup is better than a complete halt.
2. Don’t Let Just-in-Time Make Your Business Fragile
Lean models work until something breaks. But holding a bit of extra inventory, especially ahead of peak seasons, can protect revenue and customer trust. But doing that can be expensive, so segment your inventory. Hold deeper stock on high-demand or hard-to-source items. Let lower-value or low-volume items run leaner.
3. Choose Your Freight and Supplier Partners Like Long-Term Allies
When crises hit, strong logistics partnerships matter more than price tags. Work with freight forwarders and transport companies that have capacity and that you can trust, especially those that give early warnings, share information in real-time, and show up when plans change. However, avoid relying on only one partner. You need options for flexibility.
4. Stress Test Your Supply Chain Every Six Months
You don’t need a global crisis to run a drill. Every six months, simulate a route closure, fuel price spike, or customs delay. Walk through how you’d respond across logistics, finance, and sales. Document the gaps and update your fallback option.
Obinabo Tochukwu Tabansi is a supply chain digital writer (Content writer & Ghostwriter) helping professionals and business owners across Africa learn from real-world supply chain wins and setbacks and apply proven strategies to their own operations. He also crafts social content for logistics and supply chain companies, turning their solutions and insights into engaging posts that drive visibility and trust.
