European, US retailers absorb Red Sea shock, wary of hiking prices

Carrying more stock, switching to suppliers nearer to consumers and reducing dependence on China are tactics European and U.S. retailers used to build more resilient supply chains following disruptions during the COVID-19 pandemic. Faced now with transport delays of two weeks or more as cargo ships are rerouted from the Red Sea, they have limited financial wiggle room to splurge on workarounds like air freight that would get products into stores faster. Many are simply opting to take the hit from higher transport costs rather than risk hiking prices.