Tesla has announced a suspension of most car production at its factory near Berlin for two weeks from the end of this month, due to a squeeze on component supplies as ships avoid the Red Sea and come to Europe via the Cape of Good Hope, adding up to 10 days to transit time.
"The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Gruenheide," Tesla said in a statement.
Other companies, including China's second largest car maker Geely and the Swedish home furnishing giant Ikea have warned of possible disruption to manufacturing.
"Relying on so many key components from Asia, and specifically China, has been a potential weak spot in any automaker’s supply chain," said Sam Fiorani, vice president at AutoForecast Solutions.
"Tesla relies heavily on China for battery components, which need to be transported to Europe through the Red Sea, putting production constantly at risk."
More transit time, more cost
The escalating conflict in the Red Sea has reignited inflationary fears and concerns over supply chains as shipping companies opt for expensive rerouting options, rather than passing through the conflict zone.
Shipping giants Hapag-Lloyd and Maersk have been rerouting their vessels round the southern tip of Africa for the past two weeks, a process that not only adds extra days at sea, but also costs an estimated extra $1 million per ship.
"At least 20 per cent of global shipping is being disrupted by long journey times and port congestion," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The risk is that supply chains are tightening up around the globe, increasing the risk of bottlenecks, which could once again fuel inflation."
UK grocery giant Tesco this week announced prices in its shops could rise, given increased shipping costs. The supermarket chain stressed it was not a foregone conclusion that the extra costs would be passed on to consumers, as the situation remains uncertain.
Meanwhile, clothing chain Next and footwear company Crocs have also warned of delays to deliveries.
Inflation fears
Meanwhile, broader inflationary concerns were raised as oil prices rose 2 per cent on Friday, following the air and sea strikes on Houthi military targets in Yemen carried out by US and British forces in response to attacks by the Iran-backed group on shipping in the Red Sea.
Oil prices have risen by about 7 per cent since early December, before Houthi rebels started their attacks on ships passing through Bab Al Mandeb.
The events in the Red Sea added to market concerns over the potential for a broader conflict in the Middle East and the effect that might have on oil supplies from the region, especially those passing through the crucial Strait of Hormuz.
"If a large part of Strait of Hormuz flows were to be halted, it would present up to three times the impact of the 1970s oil price shocks and over double the impact of the Ukraine war on gas markets, atop already fragile supply chains and stock levels," said Saul Kavonic, an energy analyst at MST Marquee.
COMPANY%20PROFILE
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CRICKET%20WORLD%20CUP%20QUALIFIER%2C%20ZIMBABWE%20
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About RuPay
A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank
RuPay process payments between banks and merchants for purchases made with credit or debit cards
It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.
In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments
The name blends two words rupee and payment
Some advantages of the network include lower processing fees and transaction costs
Crops that could be introduced to the UAE
1: Quinoa
2. Bathua
3. Amaranth
4. Pearl and finger millet
5. Sorghum
Boulder shooting victims
• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Dengue%20fever%20symptoms
%3Cp%3EHigh%20fever%20(40%C2%B0C%2F104%C2%B0F)%3Cbr%3ESevere%20headache%3Cbr%3EPain%20behind%20the%20eyes%3Cbr%3EMuscle%20and%20joint%20pains%3Cbr%3ENausea%3Cbr%3EVomiting%3Cbr%3ESwollen%20glands%3Cbr%3ERash%26nbsp%3B%3C%2Fp%3E%0A
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
OPENING FIXTURES
Saturday September 12
Crystal Palace v Southampton
Fulham v Arsenal
Liverpool v Leeds United
Tottenham v Everton
West Brom v Leicester
West Ham v Newcastle
Monday September 14
Brighton v Chelsea
Sheffield United v Wolves
To be rescheduled
Burnley v Manchester United
Manchester City v Aston Villa
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
