Possible Resumption of Suez Canal Transit Raises Safety Concerns for German Automotive Industry

The German automotive industry, represented by the VDA, is concerned about insurance issues and crew safety before resuming Suez Canal transits. A survey of the route has been conducted, and Maersk plans to resume use, potentially reducing transport times and costs following disruptions from Yemeni Houthi rebel attacks.

The German automotive industry is currently grappling with unresolved matters, particularly concerning insurance, regarding the resumption of transport through the Suez Canal, according to a statement by its business association, VDA, on Friday. Ensuring the absolute safety of crew members remains the foremost priority for all parties involved.

A preliminary survey of the canal route has been carried out with select shipping companies under tightened security protocols. The VDA noted that, in principle, resuming navigation through the Suez Canal could result in shorter transit times and reduced costs compared to the currently used alternative routes.

This week, Maersk announced its intention to resume one of its services using the Red Sea and Suez Canal by the month's end, signifying a significant move towards alleviating two years of global trade disruptions caused by attacks on ships by Yemeni Houthi rebels.

(With inputs from agencies.)