Chinese car manufacturers have been affected by the actions of Houthi militants from Yemen who control the Red Sea. Their cars are taking longer to arrive in Europe.
As reported by Asia Financial, on Monday (25/12/2023), several logistics analysts said that Chinese car manufacturers are preparing new routes so that their cars can enter the Blue Continent. It is planned that this route will be carried out through the southernmost region of Africa, specifically via the Cape of Good Hope in South Africa.
“Car deliveries will cover a further distance of 9,000 kilometers from the normal route. The estimated delivery time will be longer, around six to 14 days in normal time,” said Asia Financial.
This condition will hurt cars made in China. The prices of the cars they make will inevitably rise to balance rising shipping costs.
Many logistics companies from China do not want to dare pass through the Suez Canal in the Red Sea. This is because Houthi militants already control the area.
“China COSCO Shipping Corp Ltd, which is the fourth largest container carrier, has suspended trips via the Red Sea. Likewise, Orient Overseas International which is based in Hong Kon, and Evergreen Marine which is based in Taipei, admitted to avoiding the previous route,” explained Asia Financial.
It is known that the 192-kilometer-long Suez Canal is the fastest sea route between Asia and Europe. This sea area is very important for world oil trade and logistics distribution.
It’s just that this area is now controlled by Houthi militants from Yemen who are disappointed with Israel which has long carried out controversial policies with Palestine. They prohibited all ships flying the flag of Israel and supporting countries from passing through the Suez Canal.
As a result, up to now, many logistics distributions have been hampered due to this blockage.
