Peripherals giant Logitech has confirmed that the Red Sea crisis is significantly impacting its business. Attacks on Red Sea shipping have spurred Logitech to decide on a longer, safer, slower, and more costly shipping route, especially for products destined for the European market. According to Reuters, the computer keyboards, mice, speakers, and webcams brand will see an impact of 100 basis points on its profit margin due to the raised costs. Thus, Logitech became one of the first tech companies to announce that the Red Sea crisis is affecting its business.
To ensure shipments from the Far East to Europe pass safely, Logitech’s gear now needs about 30 more days to reach its destination. Avoiding the Red Sea / Suez Canal route impacts shippers in several ways. Logitech CEO Hanneke Faber told Reuters in an interview on Tuesday that the new route “is taking us about 30 days longer.” Faber sees this rerouting, presumably around the horn of Africa, as impactful on company profits.
