Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Zara owner Inditex flags one-week delays due to Red Sea crisis

Published 03/14/2024, 10:39 AM
Updated 03/14/2024, 10:40 AM
© Reuters. FILE PHOTO: Zara's logo is displayed on a window, at one of the company's largest stores in the world, in Madrid, Spain, April 7, 2022. REUTERS/Juan Medina/File Photo

MADRID (Reuters) - The world's biggest apparel retailer Inditex (BME:ITX) said average shipping times have been delayed by about a week by the Red Sea crisis, as container ships carrying its products avoid the Suez Canal and travel around the southern tip of Africa.

Yemen's Houthis have kept up a relentless campaign of attacks on vessels in one of the world's busiest shipping lanes since November, in what they say is solidarity with the Palestinians during Israel's war with Hamas in Gaza.

"Shipping costs may have risen as a result of higher fuel consumption and the extraordinary cost overruns," Inditex said in its annual report on Thursday.

"Our operations have not been significantly impacted by this situation so far," it added.

Inditex said the shipping disruption has so far been the main impact on its business from the conflict in the Middle East.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.