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Tensions in the Red Sea: automobile factories shut down in Europe
Several car manufacturers, such as Tesla and Volvo, will have to close their factories in Europe while waiting for deliveries. Transport companies have fallen behind schedule. They must in fact bypass Africa, since the Houthi rebels in Yemen attack boats in the Red Sea. – (France 2)
Several car manufacturers will have to temporarily close their factories in Europe while waiting for deliveries. Transport companies have fallen behind schedule. They must in fact bypass Africa, since the Houthi rebels in Yemen attack boats in the Red Sea.
Are tensions in the Red Sea destabilizing the European economy? A month after the first attacks by Yemeni rebels against cargo ships, the first effects are being felt in Europe. In Ghent, Belgium, the Volvo group factory is at a standstill. The employees have been technically unemployed since the morning of Monday January 15. “They told us that we wouldn’t work because certain materials were missing at the factory, so we can’t build cars anymore“, explains Dominique Strubbe, ABCC Volvo Ghent union representative.
Bypass through Africa
He loses part of his salary, like “6,000 employees out of 7,000″, and this for three days, he said. Tesla, in Germany, and to a lesser extent Stellantis, in France, are also affected. At the origin of the difficulties, the instability in the Red Sea, where ships are becoming rarer. They prefer to bypass Africa via the South, as evidenced by real-time maritime navigation maps. In one minus, the price of containers between Asia and Europe has tripled. With ships speeding up to catch up, fuel consumption is also soaring.
Among Our sources:
Real-time maritime traffic
Drewry Container Price Index
Non-exhaustive list.
