Chinese Auto Exporters Face Costly Detour After Red Sea Attacks, Expert Says

The recent spate of attacks against Israel-linked vessels could force cargo ships to divert from the key Red Sea shipping route, significantly increasing the cost and time of Chinese car exports to Europe, a logistics expert told Caixin.

The Red Sea sits at the entrance to the Suez Canal, which forms the shortest shipping route between Asia and Europe, making it crucial for trade between the two regions. Multiple commercial ships have been attacked or targeted in or around the Indian Ocean inlet since mid-November, including at least three Israel-linked ships, among which was the Galaxy Leader, a vehicle carrier seized by Yemeni rebels.