"German Chemicals Sector Grapples with Red Sea Crisis Impact"
Germany's chemicals sector, the country's third-biggest industry, is facing supply disruptions and higher freight costs due to delayed shipments via the Red Sea, as container shippers have diverted vessels away from the Suez Canal following attacks by Yemen's Houthis. This challenge comes on top of higher energy and materials costs, impacting companies' production and leading to frank discussions with customers. While some companies are mitigating the impact by ordering earlier and switching to air freight, others are less affected due to strong regional footprints and sufficient safety stocks.