Blockade Suez Canal possible obstacle to car industry

The blockade of the Suez Canal by the container ship Ever Given may lead to supply problems within the automotive industry. Various car brands and suppliers are preparing for the consequences that may arise, as it is not clear exactly when the container ship will be liberated from its dire position.

The Suez Canal is the shortest sea route from Europe to Asia. This trade route is therefore essential for car manufacturers from both China and Europe. Now that the channel has been blocked, trading also comes to a halt. This of course raises the question to what extent car manufacturers will be affected by this. At the moment the consequences seem to be less than expected, but when the blockade lasts longer, the consequences become noticeable. Audi says in a response opposite Autonews that it may have consequences for produced cars and stocks of materials that are already on their way to their destination, but that the effects are not immediately noticeable because the transport takes several weeks.

Volkswagen says the disruption has not yet caused problems in the factories, but that this could change if the situation persists. BMW says production will not be affected by the blockade in the short term and will continue as planned for the time being. In short, the car manufacturers do not seem to really notice it yet, but the consequences may still arise. Shipping companies can optionally choose to take the ten-day longer route around South Africa, but that is of course only beneficial when the Ever Given is still for a considerable period of time. After the blockade has been lifted, congestion in the ports may also cause the necessary delay. In any case, it is not a pleasant situation for the automotive industry, which is already plagued by an ongoing shortage of microchips.

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