Carmakers, already struggling with supply chain problems, face further disruptions because of the Red Sea security problems as car-carrying vessels are rerouted, shipping executives have warned.
Lasse Kristoffersen, chief executive of Oslo-based Wallenius Wilhelmsen, and Georg Whist, CEO of Gram Car Carriers, were speaking after continued attacks in the Red Sea last week prompted two leading Japanese operators — NYK Line and K Line — to suspend sailings via the Suez Canal.
Their decision means that nearly all big car car-carrier operators have now switched their Asia to Europe services to the longer route round the Cape of Good Hope. The switch adds seven to 10 days to the normal voyage time of about four weeks between Shanghai and northern Europe, further reducing already squeezed capacity on the key trade route.