Asos and Boohoo resort to nearshoring amid the Red Sea crisis

Asos
EcommerceFashionSupply Chain

Asos and Boohoo have ramped up nearshoring in light of the ongoing attacks on container ships on the Red Sea and Suez Canal routes.

The fashion giants have increased the sourcing of products from countries such as Turkey and Morocco, as well as domestically in the UK, to avoid the longer-lead times and inflated prices associated with shipping from Asia due to the rerouting the attacks have caused.

Asos revealed that it still uses the Suez Canal route for ocean freight shipments of longer lead products from Asia to Europe, reserving the use of faster routes for its trend-driven, seasonal lines, according to Retail Week.

The online giant said that where it is seeing an extension in shipping times, this can be up to 10 days, however, it remains in close contact with its strategic logistics partner Maersk as part of the ordinary course of business.


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Plans are already in place to manage any short-term delays and extended lead times will be factored into the brand’s purchasing decisions moving forward, should the situation continue, the publication reported.

Boohoo has so far declined to comment further.

Other retailers – including fashion retailers Next and Matalan, and discount store Poundland – have expressed concern about supply issues in the wake of the disruptions, while furniture giant Ikea reportedly has sufficient stock to absorb any supply chain shocks.

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Asos and Boohoo resort to nearshoring amid the Red Sea crisis

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Asos and Boohoo have ramped up nearshoring in light of the ongoing attacks on container ships on the Red Sea and Suez Canal routes.

The fashion giants have increased the sourcing of products from countries such as Turkey and Morocco, as well as domestically in the UK, to avoid the longer-lead times and inflated prices associated with shipping from Asia due to the rerouting the attacks have caused.

Asos revealed that it still uses the Suez Canal route for ocean freight shipments of longer lead products from Asia to Europe, reserving the use of faster routes for its trend-driven, seasonal lines, according to Retail Week.

The online giant said that where it is seeing an extension in shipping times, this can be up to 10 days, however, it remains in close contact with its strategic logistics partner Maersk as part of the ordinary course of business.


Subscribe to Retail Gazette for free

Sign up here to get the latest news straight into your inbox each morning 


Plans are already in place to manage any short-term delays and extended lead times will be factored into the brand’s purchasing decisions moving forward, should the situation continue, the publication reported.

Boohoo has so far declined to comment further.

Other retailers – including fashion retailers Next and Matalan, and discount store Poundland – have expressed concern about supply issues in the wake of the disruptions, while furniture giant Ikea reportedly has sufficient stock to absorb any supply chain shocks.

Click here to sign up to Retail Gazette‘s free daily email newsletter

EcommerceFashionSupply Chain

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