Suez Canal Incidents: Over 300 vessels have opted for a 6,000 nautical mile diversion around the Cape of Good Hope in recent days. Consequently, transit durations, shipping costs, and insurance premiums have risen, posing a potential disruption to global production timelines. With the Houthi assault in the Red Sea looming over world trade, what solutions can be explored?
Executives at some of these companies said the disruptions and additional costs may make new models costlier. The automotive industry, struggling with supply chain disruptions, will also be impacted if this problem continues, said industry experts.