Welcome to our special 200th episode of China Manufacturing Decoded! In this episode, we discuss the impact of the Houthi Yemeni rebels’ attacks on shipping in the Red Sea, and how it may affect your shipping costs and other issues you might face.

Adrian hosts and is joined by our very own Kate Oliynykova, Head of Supply Chain Management at Sofeast Group, who shares her insights on the current political events and their potential ripple effects on importers. Listen in as we unravel the complexity of this issue.


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The Red Sea route accounts for 12% of global trade, including 30% of the container traffic passing through the Suez Canal. Any disruption in this route affects not only oil and gas prices but also the availability and cost of a broad range of goods. The current attacks have caused a direct increase in ship insurance costs, prompting bigger shipping companies to opt for alternative routes around the Cape of Good Hope. This, in turn, not only escalates transportation costs but also significantly extends delivery times.

In this scenario, we advise importers to diversify their supply chain, considering options like rail or truck deliveries, or partial shipments with air freight.

What are the repercussions if the situation is prolonged? How can importers better prepare for these unforeseen circumstances? Tune in to this episode of China Manufacturing Decoded as we discuss the critical aspects of this multinational issue. Remember, the Sofeast Group offers an in-house logistics department to help formulate a tailored solution that meets your needs most cost-effectively, given the present situation.


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