Global supply chains feel the Red Sea strain
The crisis unfolding in the Red Sea has begun to echo through Spanish trading firms and their partners. Sectors such as textiles, electronics and automotive are already sensing the ripple effects, and the impact on end customers is likely to grow. Yet, experience since the pandemic and the Suez Canal disruption has tempered the risk of a stockout resembling earlier shocks. Industry insiders from distribution and auto sectors point to lessons learned and stronger contingency plans. They stress that the sector has absorbed hard-earned knowledge from past disruptions and now maintains larger safety stocks as a precaution.
Despite these preparations, delays are becoming more common. Deliveries from Asia are taking longer, with transit times stretching from 5 to 21 days. The cost of goods has risen, and if this pattern persists, final prices could edge higher. While immediate alarm is not universal, there is a shared concern about what might happen if the situation worsens.
The root of the problem traces back to late last year, when Yemen’s Houthi actions began targeting vessels in the Red Sea, sometimes aiming at ships connected to Israel. This sea route remains one of the most critical arteries of international trade, handling roughly 40% of Asia-Europe freight according to Nomura. In response, many shipping lines are rerouting traffic to longer paths and alternative corridors to mitigate risk.
Industry expert Javier Jaso, who leads transport at AECOC, explains that carriers are opting for longer routes to Europe, looping down toward South Africa and skirting up the Iberian Peninsula along Africa’s edge. The upheaval has disrupted supply plans across the board, forcing companies to absorb extra fuel costs and added insecurity. The heavier logistics burden has driven maritime transport prices higher, a trend noted by Jaso as particularly pronounced in recent weeks.
Jaso highlights a notable surge in insurance concerns and the preemptive behavior of firms who push for higher orders to safeguard continuity. Credit insurers report dramatic cost increases for sea transport, with some indices showing spikes of up to three hundred percent. This shift has stressed capacity, sometimes creating a race to secure space on vessels where the highest bidder gains priority.
Possible price increases
From AECOC’s vantage point, and supported by two corroborating sources, the expectation is that many companies will refrain from passing every additional cost directly to consumers. Judgments about price shifts hinge on how long the disruption lasts. Prolonged tensions could translate into higher final prices as businesses attempt to preserve supply, according to Javier Jaso.
ANGED, the National Association of Major Distribution Companies, shares concerns that a prolonged crisis would exacerbate the impact. The central fear is that an extended period of disruption would intensify cost pressures and widen delivery delays, potentially affecting consumer access to goods in key markets.
Impact on Volvo, Michelin or Ikea
Nomura’s latest assessment suggests inflationary pressures could rise in the medium term across Europe. The firm points to events such as Tesla halting much of its Berlin production through mid-February, Volvo pausing Belgian operations briefly, and Michelin slowing car production as concrete examples. Similar delays have affected four of Ikea’s Spanish factories, with knock-on effects for Dutch deliveries, underscoring how material supply pauses ripple through the region.
créditos y caución, a credit insurer, notes that longer, less secure supply chains are likely to cause shortages in several sectors. European manufacturers rely on a broad mix of intermediate goods sourced from Asia-Pacific, including electrical components, high-tech products, rubber and plastic items, chemicals and machinery. The textile sector, in particular, faces challenges both in finished goods and raw materials, according to AECOC’s projections.
Industry insiders warn that orders for Asian-branded cars and devices may face multi-week waits. A familiar example cited is a delay of roughly three weeks for vehicles and consumer electronics assembled in Asia, illustrating how extended transit windows translate into real-world customer waiting times.
These dynamics emphasize the importance of diversified sourcing, resilient inventories, and proactive risk assessment across sectors that rely on rapid, integrated international logistics. The evolving environment demands vigilance and adaptive strategies to keep supply chains functioning as markets react to the changing cost and time landscapes.