Trade expert Jörg Funder: How the attacks in the Red Sea affect maritime trade and what consequences this has for global supply chains

Trade expert Jörg Funder: How the attacks in the Red Sea affect maritime trade and what consequences this has for global supply chains

According to a report from www.tagesschau.de, cargo ships continue to be forced to take long detours around the Red Sea, impacting companies such as Tesla and Ikea. Trade expert Jörg Funder explains that the attack on the Houthi rebels could make the sea route through the Red Sea safer again in the medium term, which would speed up and make trade between Asia and Europe cheaper. Despite the 70 percent drop in container traffic in the Red Sea, alternative routes and transport methods exist, keeping the impact on businesses and consumers low. However, individual companies such as Ikea and Tesla report delivery delays due to the detour. Funder emphasizes the need to make supply chains more resilient and replenish warehouses in Europe. He explains that the longer sea route via the Cape of Good Hope causes higher transportation costs, and the Western alliance wants to ensure the security of the Red Sea to ensure the rapid transport of goods before the Chinese New Year. Despite the dependence on global supply chains, the restructuring process is already underway to become more independent from Asia. New supply networks are emerging and the relocation of production to Europe will gain momentum in the next few years. However, the question arises as to whether the capacities and skills for production in Europe can be built up so quickly. Current events show that developments in global trade routes have a direct impact on the financial industry and the market. The changes may lead to higher transportation costs and longer delivery times, which may affect economic growth and company profits. It is important to closely monitor the impact on global trade and make appropriate adjustments to ensure financial industry and market stability.