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Red Sea attacks see exporters turn to China-Europe Railway Express ahead of Lunar New Year
- Many shipping companies have pulled their vessels from the Suez Canal route as Houthi rebels in Yemen continue to fire at cargo ships
- Some exporters are now using the overland rail route between China and Europe, with enquiries doubling since the Red Sea attacks began
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With major disruptions already hitting global supply chains due to Houthi rebel attacks in the Red Sea, the situation is now set to worsen as shipping companies face the extra pressure of the coming Lunar New Year.
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But one possible solution to the current shipping crisis may have been found as some exporters switch to the overland route provided by the China-Europe Railway Express.
Since November, Iranian-backed Houthi rebels, who control much of Yemen including most of the Red Sea coast, have been using exploding drones and missiles to attack commercial vessels using the vital trade route, as they protest Israel’s military operations in Gaza.
Their actions have forced major shipping lines, including Danish shipping giant Maersk, Chinese state-owned shipping company Cosco and energy giant BP, to stop using the Suez Canal and Red Sea route.
But now the headaches being experienced by shipping companies are set to get even worse as they deal with the extra pressure traditionally felt in the lead-up to Lunar New Year.
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China, known as the factory of the world, produces a lot of goods for export before factories close for the annual holiday. But with ships being paused or diverted around the Cape of Good Hope, many are not expected to reach Chinese ports in time.
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