The Automotive Component Manufacturers Association (ACMA) has noted that while the export demand growth is positive but the Red Sea Crisis is directly impacting the shipping cost. The Red Sea accounts for 30% of the world’s shipping traffic is facing a conduit crisis which is forcing shipping lines to divert to other ports, increasing time, cost and inventory for exports. As the time to market is going up, inventory levels are going up, production timelines are increasing and working capital is getting trapped. Due to such a crisis now companies are opting for alternative paths such as Singapore Port. However, sudden increase in traffic at alternative ports leads to increased time for supply of demand by about 7 to14 days.
