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Tensions in the Red Sea: Automobile factories shut down in Europe
Some car manufacturers such as Tesla and Volvo have to close their factories in Europe while waiting for deliveries. Transport companies have fallen behind schedule. They should in fact bypass Africa, as Houthi rebels in Yemen attack boats in the Red Sea. – (France 2)
Some car manufacturers have to temporarily close their factories in Europe while waiting for deliveries. Transport companies have fallen behind schedule. They should in fact bypass Africa, as 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 suspended. As of the morning of Monday January 15, the employees are technically unemployed. “They told us we wouldn’t work because the factory was missing certain materials, so we couldn’t make cars anymore.“, explains Dominique Strube, representative of the ABCC Volvo Ghent union.
Bypass through Africa
He loses a part of his salary, as “6,000 employees out of 7,000”., and for these three days, he said. Tesla in Germany and, to a lesser extent, Stellantis in France are also affected. At the root of the troubles, instability in the Red Sea, where ships are becoming scarce. They prefer to bypass Africa through the South as evidenced by real-time maritime navigation maps. In a minus, container prices have tripled between Asia and Europe. As ships are growing faster to catch up, fuel consumption is also increasing.
Among our sources:
Real-time marine traffic
Drewry Container Price Index
A non-exhaustive list.
