August 13, 2025

Hold on tight while we take you through a daring shipping story! Chinese automakers are sailing their car shipments to Europe right through the Red Sea and Suez Canal, even though Iran-backed Houthi rebels have been attacking ships there for nearly two years. Why is this a big deal? Because the Red Sea route is the shortest, shunning a longer, pricier detour all around Africa. Just last month, at least 14 giant car-carrier ships boldly traveled through the Red Sea and the Suez Canal from China to Europe. The same number did the same in June, according to Lloyd's List Intelligence, a smart maritime information service. This shipping hustle stays strong, even after the Houthis sank two cargo ships with drones, grenades, and guns last month. Danger? Yes. But business rolls on. Many experts think China has quietly made a deal with Iran or the Houthis: "China has found a way to deal with the Iran-backed Houthi rebels, and they have been told that their ships will not be targeted," said Daniel Nash, associate director of valuation and analytics at Veson Nautical. Why take risks? Because going through the Red Sea and Suez Canal saves a whopping 14 to 18 days compared to the long slog around Africa. That means paying less for fuel, crew salaries, and ship wear-and-tear — about a few hundred dollars saved per car! Rob Willmington, a senior analyst at Lloyd's List, explained that the Africa route "adds considerable costs to a shipowner's fuel bill, increases pollution from the vessel and ultimately adds costs for buyers of new cars." Still, it's not easy for others to jump on this route. Many shipowners from Europe and Asia refuse to let their vessels go this way, citing safety worries. Insurance companies in London get nervous, hiking costs for voyages in this hotspot. The big Chinese players SAIC Motor (once called Shanghai Automotive Industry Corporation) and BYD, who ship these cars, didn't reply to requests for comments. But it’s not just Chinese ships—the Red Sea route also saw car-carrier vessels owned by a South Korean company and a joint venture from Abu Dhabi and Turkey, all stopping in China to load their cargo. When asked, China's Ministry of Foreign Affairs gave a careful answer: while they didn’t mention the car shipments, they said, "China has been playing an active role in easing tensions since the situation in the Red Sea escalated, and will continue to contribute to the early restoration of peace and tranquillity in the Red Sea." So, the next time you see a shiny new Chinese car on Indian roads, remember it might have braved tricky waters and daring deals to arrive faster and cheaper! The shipping saga in the Red Sea is far from over, and the world is watching these bold voyages with bated breath.

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Tags: Chinese automakers, Red sea, Suez canal, Houthi militia, Shipping routes, Car transport,