The New York Times of the United States reported on the 12th that Chinese automobile manufacturers are exporting large numbers of vehicles to the European market via the Red Sea and Suez Canal routes. Since the end of 2023, the Houthi rebels in Yemen have begun to harass ships sailing through the Red Sea route, causing some international shipping companies to choose alternative routes around Africa. However, Chinese automobile transport ships still choose the Red Sea route and have not become targets of the Houthi rebels.

The report cited an analysis from the British maritime information service provider Lloyd's List Intelligence, which stated that at least 14 automobile transport ships departed from Chinese ports in July and June respectively, heading to Europe via the Red Sea and Suez Canal. These ships are mostly large automobile transport ships recently delivered by Chinese shipyards, capable of carrying up to 5,000 cars at a time, with a total value reaching as high as one hundred million dollars.

Transporting cars from Asia to Europe via the long route around Africa can increase the transportation time by 14 to 18 days, which will increase fuel costs and raise the freight cost for each car by hundreds of dollars. In comparison, choosing the Red Sea and Suez Canal route can significantly shorten the transportation time, reduce transportation costs, and enhance the competitiveness of Chinese automakers in the European market against Japanese, South Korean, and European automakers.

However, the report pointed out that Chinese automakers still face tariff pressures in the European market. The EU has imposed high tariffs on electric vehicles produced in China since last year, and to avoid some of these tariffs, Chinese automakers have increased the proportion of hybrid models in their exports.

The New York Times noted that according to the analysis report, in addition to the cargo ships of Chinese companies, several automobile transport ships owned by South Korean companies or joint ventures between Abu Dhabi and Turkey have also recently chosen the Red Sea and Suez Canal route. Most other commercial cargo ships, including large container ships under China Shipping Container Lines, have been avoiding this route.

The report mentioned that the Houthi rebels had sunk two cargo ships in early July, claiming such attacks were intended to support the Palestinian people and respond to Israel's military operations in the Gaza Strip. The Houthi rebels stated they would continue to attack ships associated with Israel. In November 2023, the Houthi rebels had seized the automobile transport ship "Galaxy Leader." A month earlier, the Israeli Air Force bombed the "Galaxy Leader," claiming the ship's radar was used by the Houthi rebels to track targets in the Red Sea.

"Galaxy Leader" cargo ship (reference picture) Source: The Times of Israel

Author: Kong Erjun

Original article: https://www.toutiao.com/article/7537598794540630580/

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