Many giants announced that they would suspend transportation! Many shipping companies have decided to take a detour! Shipping costs soar

Since the outbreak of a new round of Palestinian-Israeli conflict, Yemen’s Houthi armed forces have used drones and missiles to attack targets in the Red Sea many times. This has led to many international shipping companies announcing the suspension of Red Sea routes and instead detouring around the southern tip of Africa. At the same time, on the 15th, Qatar Energy, the world's major LNG exporter, suspended LNG transportation through the Red Sea waters. Shell shipments through Red Sea waters have also been suspended indefinitely.

Affected by the tense situation in the Red Sea, as of the 16th, Japan's three major shipping companies have decided to allow ships of all sizes to avoid the Red Sea and sail around the route. As a result, the transportation time has increased by 2 to 3 weeks compared with the original. Not only has the delayed arrival of goods affected corporate production, but shipping costs have also soared.

According to a survey by the Japan External Trade Organization, a number of Japanese food distributors in the UK said that sea freight has increased to three to five times the previous level, and is expected to rise further in the future. The Japan External Trade Organization also stated that if the longer transportation cycle continues for a long time, it will not only lead to product shortages, but may also cause containers to face a supply shortage. In order to secure the containers needed for shipping as early as possible, the trend of Japanese companies requiring distributors to place orders in advance has also increased.

The recent situation in the Red Sea has continued to be tense, which has had a serious impact on maritime transportation. Due to obstruction of shipping, Suzuki, a major Japanese automobile manufacturer, said on the 16th that its factory in Hungary would be suspended for a week.

 Due to recent frequent attacks on merchant ships in the Red Sea, shipping has been blocked. Suzuki informed the outside world on the 16th that the company's vehicle factory in Hungary has been suspended for one week starting from the 15th.

Suzuki's Hungarian factory imports engines and other parts from Japan for production. However, due to the obstruction of the Red Sea and Suez Canal routes, various shipping companies were forced to switch to roundabout transportation via the Cape of Good Hope at the southern tip of Africa, resulting in delays in the arrival of parts and components, thereby affecting production. Affected this time are two SUV models produced by Suzuki in Hungary for the European market.