China is calling for an end to the “harassment” of civilian ships in the Red Sea and “the maintenance of fluid global supply chains”, one of the spokespersons for Chinese diplomacy said on Friday January 19. Houthi attacks targeting merchant ships they consider “linked to Israel” are weighing on Chinese exporters.
4 mins
from our correspondent in Beijing,
After years of Covid health restrictions, this crisis in the Red Sea is the straw that is causing warehouses to overflow and despairing exporters on the Chinese east coast. Delivery delays, increasing costs… “ There are two major impacts of this crisis”, explains Marco Castelli, founder of IC Trade, based in Yiwu, in the south-east of China. It exports mechanical parts made in China to Europe…
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Soaring container prices
“ The first impact is the lengthening of shipping times. Transit times are longer. It takes about 20 to 25 days longer than usual. It is therefore a cash flow and inventory problem for customers and suppliers. And then the second impact is shipping prices which increase »
The prices of containers have been multiplied by 3 or even 4, specifies this specialist, depending on the urgency of the delivery. And some importers have already withdrawn part of their orders.
“ It’s still better than during the virus, there are ups and downs in trading; we try to do, explains this intermediary who works with many clients in Europe, the Maghreb and Africa. But it shouldn’t last. At the moment transport is super expensive. We went from 2,000 euros to 6,000 for a container to France. So those who are not short of stocks say they will wait for the Chinese holiday next month, hoping that prices will come down again. I have a Moroccan customer who told me that he still had a little stock and that he would wait until after the Chinese New Year to have it delivered, because at the moment transport is too expensive. But hey, those who really need their goods have no choice. For merchants, stores must operate, and it is the end customer who will pay the price. »
Read alsoAttacks in the Red Sea: “World trade risks being affected”
Consequences on employment
Inflation which weighs on consumers, but also risks slowing down the entire production chain and in the long term seeing certain customers relocate their production. With again two consequences in logistical terms, estimates Marco Castelli: “ The first is that if you have longer delivery and transit times, you need to order more products to maintain your inventory level. So if you need more time, you need more goods in your stock because the next stock will arrive later. So, you have to spend money and eventually perhaps think about outsourcing your orders. But the switch is not that easy and above all cannot be done quickly. The first consequence is therefore that the company must buy more products and this leads to cash flow problems. “.
Read alsoGarlic, grapes, citrus fruits, avocado… the crisis in the Red Sea is disrupting exports
However, for certain factories in China, trade with Europe and Africa represents up to 40% of overall activity, reports the agency Reuters. The crisis in the Red Sea therefore risks also weighing on employment in the former workshop of the world. Hence the call to order from Beijing: “ The waters of the Red Sea provide an important international trade route for goods and energy “, thundered Mao Ning, the spokesperson for the Chinese Ministry of Foreign Affairs, on Friday, in comments reported by AFP.
There is urgency, because in less than three weeks the Lunar New Year holidays begin, and the closure of numerous factories in China linked to the departure on leave of some 300 million migrant workers.
Read alsoRed Sea: new Houthi strikes on an American ship, a week of escalation in the Gulf of Aden
Climbing in the Red Sea
January 12
American and British forces strike before dawn on 60 targets on around fifteen sites held by the Houthis in Yemen, using fighter planes and missiles, according to the American military command in the Middle East (Centcom). Five people were killed during the strikes, according to the Houthis, who fired “at least one” missile in response without hitting any targets. After these strikes, the rebels proclaimed American and British interests as “legitimate targets”.
January 13
A new US strike hits Al-Dailami air base, located in the Houthi-controlled capital Sanaa, according to the US military, following warnings from the Houthis of continued attacks on ships in the Red Sea.
January 14
US forces shoot down cruise missile fired by Houthis towards US destroyer USS Laboonfrom Yemen.
January 15
Missile fired by Houthis hits US cargo ship Gibraltar Eagle off the coast of the city of Aden in southern Yemen, causing a fire on board but causing no casualties.
January 16
The United States destroys four anti-ship ballistic missiles ready to be launched from Yemen, according to the US military. Later, a missile hit a Maltese-flagged Greek bulk carrier sailing in the Red Sea, causing limited damage.
January 17
Houthi-launched drone hits US bulk carrier Genco Picardy, without causing injuries but causing slight damage, according to Centcom. American forces then neutralized 14 missiles “loaded for firing” from Yemen, according to Washington.
January 18
The Houthis claim strikes “directly hit” an American merchant ship, the Chem Ranger, in the Gulf of Aden. US forces say the missiles missed their target. The United States claims to have destroyed two Houthi anti-ship missiles in Yemen, ready to be launched into the Red Sea according to them.
January 19
The United States carried out new strikes against the Houthis in Yemen on Friday. The US military “successfully conducted three defensive strikes” targeting missile launchers ready to strike in the Red Sea, White House spokesman John Kirby said. “These actions were carried out in self-defense, but they also contribute to making international waters safer for warships and merchant ships,” he argued.
(AFP)