Red Sea Crisis Squeezes Chinese Exporters as Shipping Costs Rise, Fitch Says

What’s new: The ongoing crisis in the Red Sea is driving up shipping costs of Chinese exports to European markets and may spur some Chinese electric vehicle makers to shift production overseas, said Fitch Ratings, the global credit rating agency.

Auto and solar modules are more affected by the disruption as shipping is a large portion of these products’ cost structures, Fitch said in a recent research note.