Employees inside the Suzuki Motor plant in Esztergom, Hungary where production of some models is being suspended until January 22nd. Photographer: Akos Stiller/BloombergShipping disruption in the Red Sea already appears to be damaging European manufacturing, raising the question as to whether the region’s producers can afford a protracted, expanded conflict in the region. Attacks by Houthi forces on vessels travelling through the Red Sea in solidarity with Gazans suffering the humanitarian crisis caused by Israel’s bombardment have forced transport companies to reroute hundreds of shipping vessels bound for Europe from Asia around the Cape of Good Hope. It has also put pressure of air freight rates with companies scrambling for alternatives to sea transport. READ MOREThe disruption is also beginning to cause supply chain issues for some large companies.

Source: The Irish Times January 16, 2024 22:26 UTC