Red Sea Shipping Attacks Disrupt Supply Chain, Threaten Container Shortage

Disruptions to Red Sea shipping due to attacks by Yemen's Houthi militants are causing shipping costs to surge, threatening the survival of Chinese exporters and pressuring the country's export-reliant economy. The rerouting of vessels is adding delays and costs, prompting some companies to consider shifting production closer to home. The disruptions are compounding challenges ahead of Lunar New Year, and smaller suppliers with tight margins are particularly vulnerable. The impact is felt across various industries, with concerns about delayed payments and potential closures of struggling companies.