Chinese automakers are continuing to ship vehicles to Europe via the Red Sea and Suez Canal, despite ongoing attacks on vessels in the region by Yemen’s Iran-backed Houthi militia. The route, used by at least 14 car carriers from China to Europe last month, saves 14–18 days compared with the longer voyage around Africa.
Data from Lloyd’s List Intelligence shows a similar number of Chinese car carriers made the journey in June, even after Houthis used drones, grenades, and gunfire to sink two cargo ships last month. Industry analysts suggest Beijing may have reached an understanding with Iran or the Houthis to spare Chinese vessels.
“China has found a way to deal with the Iran-backed Houthi rebels, and they have been told their ships will not be targeted,” said Daniel Nash of Veson Nautical. Many global automakers continue to avoid the Red Sea route, absorbing higher costs for the longer Africa detour.
