Automobiles are South Korea's main export commodity, and recent data released by Renault Korea Motor showed that the company's car exports fell sharply last month due to the Red Sea crisis.
Renault Korea's production plant is located in Busan, South Korea, and it is understood that the vehicles manufactured in the factory are mainly used for export, and as many as 90% of them are for the European market. As the Red Sea crisis continues to ferment, car carriers from Busan to Europe are becoming increasingly difficult to find, and thousands of vehicles waiting to be exported are currently backlogged in factories.
According to the latest data, Renault's exports of South Korean cars fell to 226 units last month, a sharp drop of more than 90% compared to the same period last year. As for the other Korean automakers, their export volume has not been significantly impacted due to their relatively small dependence on the European market, but they have already chosen to avoid the Red Sea and detour to the Cape of Good Hope, resulting in significantly longer transportation times.
South Korea's petrochemical industry, another traditional pillar industry, is also closely watching the Red Sea crisis. On the one hand, the crisis has led to sharp fluctuations in international oil prices, coupled with the freight rates of oil tankers from Europe and the Middle East to Asia**, which has increased the burden on production costs of petrochemical companies. On the other hand, soaring freight rates have also led to weak demand for processed petroleum products produced by Korean companies, which has also led to lower purchase costs for customers**. In order to retain overseas customers, a South Korean energy giant recently began to sell some light fuel products at a discount, and had to cancel a batch of jet fuel transactions because some buyers bid too low.
Statistics show that in South Korea's foreign trade transportation, sea transportation accounts for as much as 99%, and South Korea's exports of IT equipment, batteries and other cutting-edge products to Europe usually pass through the Red Sea. Recently, the Korea ** Association said that more than 70% of South Korea's import and export enterprises are in logistics difficulties due to the Red Sea crisis. In order to be able to deliver goods as soon as possible, some companies work overtime to improve production speed, and some companies consider using air transportation.
According to the logistics community**, there may be a new round of shipping costs after the Chinese New Year**, and at the same time, container leasing costs may also skyrocket as more and more empty containers are stranded in Europe.