Where are Houthis? China’s automakers taking shortcut to European markets



Chinese automakers are shipping cars to Europe through the Red Sea and Suez Canal, nearly two years after the Iran-backed Houthi militia in Yemen started attacking vessels in the critical Middle East transit route. Other automakers are still shipping cars from Asia by way of a much longer, and expensive, trip around Africa.Last month, at least 14 car-carrier ships travelled from Chinese ports to Europe through the Red Sea and Suez Canal, according to a new analysis by Lloyd’s List Intelligence, a British maritime information service. About the same number made the voyage in June. The trips have continued even after the Houthis used drones, grenades and gunfire to sink two cargo ships last month. Most shipping analysts assume that the Chinese govt has reached an understanding with Iran or the Houthis not to harm car-carrier ships from China. It seems that “China has found a way to deal with the Iran-backed Houthi rebels, and they have been told that their ships will not be targeted,” said Daniel Nash, associate director of valuation and analytics at Veson Nautical, a maritime data firm.Travelling through the Red Sea and Suez Canal saves 14 to 18 days on each round trip between Asia and Europe, compared with going around Africa. This reduces costs for fuel, crews and the ships themselves by a couple hundred dollars per car.Going around Africa “adds considerable costs to a shipowner’s fuel bill, increases pollution from the vessel and ultimately adds costs for buyers of new cars,” said Rob Willmington, a senior analyst at Lloyd’s List who led the review of voyages by car-carrier ships. Shipowners in Europe and Asia mostly refuse to allow companies to charter their vessels for such trips. Commercial insurers in London have become wary of insuring such voyages, charging higher rates when they do. The state-owned SAIC Motor, previously known as the Shanghai Automotive Industry Corporation, and BYD did not respond to our requests for comment.In addition to Chinese-owned ships, several car-carrier ships owned by a South Korean company or by a joint venture of businesses in Abu Dhabi and Turkey also sailed through the Red Sea and Suez Canal after stopping at car-loading ports in China, Willmington said.In a written reply to questions, China’s ministry of foreign affairs did not mention car-carrier ships but said that, “China has been playing an active role in easing tensions since the situation in the Red Sea escalated, and will continue to contribute to the early restoration of peace and tranquillity in the Red Sea.”





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