Japan’s three major shipping companies stopped all their vessels from crossing the waters of the Red Sea

According to the “Japanese Economic News” reported that as of the 16th local time, ONE- Japan’s three major domestic shipping companies – Japan Mail LINE (NYK), Merchant Marine Mitsui (MOL) and Kawasaki Steamship (” K “LINE) have decided to stop all their ships from crossing the Red Sea waters.

Since the outbreak of the new Israeli-Palestinian conflict, Yemen’s Houthis have used drones and missiles to repeatedly attack targets in the Red Sea waters. This has led several international shipping companies to announce the suspension of Red Sea routes and instead bypass the southern tip of Africa.

Meanwhile, on the 15th, Qatar Energy, the world’s leading LNG exporter, suspended LNG shipments through the waters of the Red Sea. Shell’s shipments through Red Sea waters have also been suspended indefinitely.

Due to the tense situation in the Red Sea, Japan’s three major shipping companies have decided to divert their ships of all sizes to avoid the Red Sea, resulting in an increase in shipping time of two to three weeks. Not only did the delayed arrival of goods affect the production of enterprises, but the cost of shipping 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 rates have risen three to five times in the past and are expected to rise further in the future. The Japan External Trade Organization also said that if the longer transportation cycle continues for a long time, it will not only lead to a shortage of goods, but also may make the container face a shortage of supplies. In order to secure containers needed for shipping as early as possible, the trend of Japanese companies requiring distributors to place orders in advance has also increased.

Suzuki’s Hungarian vehicle plant is suspended for a week

The recent tension in the Red Sea has had a serious impact on maritime transport. Japan’s major auto maker Suzuki said Monday it would suspend production at its Hungarian plant for a week due to shipping disruptions.

Due to the recent frequent attacks on merchant ships in the Red Sea region, resulting in shipping disruptions, Suzuki told the outside world on the 16th that the company’s vehicle plant in Hungary has been suspended from the 15th for a week.

Suzuki’s Hungarian plant imports engines and other components from Japan for production. But disruptions to the Red Sea and Suez Canal routes have forced shipping companies to make circuitous shipments via the Cape of Good Hope at the southern tip of Africa, delaying the arrival of parts and disrupting production. The suspension of production is affected by Suzuki’s local production of two SUV models for the European market in Hungary.

Source: Shipping Network