The Israeli website Calcalist, which specializes in economics, said that the intensification of the American-British strikes on… Houthi group This did not prevent the continued fluctuation in the supplies and storage market, and its impact on a wide range of economic sectors, from the automobile industry to the world of fashion.
In a lengthy report entitled “From Tesla to Primark… Houthi attacks disrupt production and stocks,” the site said that the crisis does not indicate an end in sight, and that the intensification of the American-British strikes on the group’s sites this week did not prevent shipping companies from avoiding dangerous shipping routes in The Red SeaDuring normal days, it controlled 12% of global maritime trade.
High shipping costs
According to the website, at least 2,400 ships changed their navigation route by choosing an alternative route via the Cape of Good Hope, which increases the duration of the journey between Europe and Asia from 35 to 49 days, thus increasing shipping costs, including fuel and insurance.
The damage was not limited to the shipbuilding industry – according to the Israeli website – but the delay in shipping operations and high costs even affected other industries. Last month, a group of companies that depend on maritime shipping warned of a wide range of damages that would be caused by a shortage of production components, high costs, and the erosion of profit margins.
The website quotes Simon Haynie, from the container studies department at British maritime transport consultancy Drewery, as saying that there is complete chaos at this stage, and that customers of maritime shipping companies will inevitably feel the damage, summarizing the crisis in the ignorance of these customers about the arrival times of the goods.
Calcalist notes that the most affected sectors so far are the automobile industry and retail trade, which are seen as more vulnerable due to delays in manufacturing and supply.
According to Thomas Barnier, of Lazar Wealth Management, the automobile industry was the first sector to be affected, given the complex supply chain on which it depends, which made his company reduce the margin of its exposure to risk (in its operations related to the sector).
The website quotes Bloomberg as estimating that the incomes of car producers will decline by 5%.
According to Carlos Tavares, CEO of the automotive giant Stellantis, logistics and shipping companies will review shipping rates due to the increased duration of trips.
The website says that Tesla was the first company to warn of the expected effects of the Houthi attacks, and announced early this month its intention to suspend production at its factory in Gruenheide, near the German capital, Berlin, for two weeks due to the delayed arrival of shipments. The company also decided to close the production unit in Berlin for two weeks, starting on the twenty-ninth of this month.
According to the Israeli website, the fashion world has not been spared from the crisis, especially with its reliance on products coming from Asia, as the British giant “Next” expressed its concern about the damage that will befall its sales, whose growth this year is expected to be almost non-existent if the difficulties of navigation through the Suez Canal continue. .
Central bank governors also warned – according to the site – of a renewed cycle of inflation that may force them to postpone programmed interest reduction plans for the rest of the year.