70% of European automobile components traverse Red Sea

[milesgehm]

Bigger number than I would have guessed:

Houthi attacks on vessels in the Red Sea have triggered alarms over trade disruptions, prompting several major international shipping heavyweights to send ships around the Cape of Good Hope. The repercussions are already manifesting in the European automotive industry, heavily reliant on the supply of essential components from Asia.

Across the spectrum of petrol, hybrid, and electric vehicles, Asia—comprising China, South Korea, and Japan—stands as a pivotal manufacturing hub for automotive components. China, with its cost efficiency and industrial clustering advantages, has become indispensable for European automakers. Statistics reveal that approximately 70% of components in the European automotive sector traverse the Red Sea waters from Asia. Potential delays in shipping schedules could impede the pace of European car production. Disruptions in the vital maritime route connecting Europe and Asia would invariably lead to logistical delays. In such a scenario, downstream car assembly plants would be compelled to pause operations until critical components, including transmissions, engines, motors, and electronic elements, are delivered, thereby resuming assembly.

The impact of Red Sea disruptions on Europe's auto manufacturing

Houthi attacks on vessels in the Red Sea have triggered alarms over trade disruptions, prompting several major international shipping heavyweights to send ships around the Cape of Good Hope. The repercussions are already manifesting in the European automotive industry, heavily reliant on the...

www.digitimes.com

 

[blueone]

70% Asian surprises me. Based on the origin country stamps on parts for our three German cars (though one was assembled in the US), I thought Eastern European countries like Poland, Hungary, Romania, Croatia, Serbia, Bulgaria, and even Turkiye and Ukraine, would have collectively made up a larger percentage.

 

[Daniel Nenni]

Troubled times for the supply chain. I have noticed here in the SF Bay that we have less container ships going through here than last year thus far. We seemed to have caught up with the backlog. They are bigger than they look and they have the right of way since metal goes into fiberglass once with no remainder (Sailing math)