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Red Sea trade route may hurt auto, electronics production

Manufacturing sectors that maintain low inventory levels and depend on the timely arrival of components will be worst hit: GTRI

image for illustrative purpose

Red Sea trade route may hurt auto, electronics production
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29 Jan 2024 6:45 AM IST

New Delhi: Longer disruptions at the crucial Red Sea trade route may hurt manufacturing lines of some sectors like electronics, automobiles, chemicals, consumer goods and machinery, economic think tank GTRI said on Sunday.

The Global Trade Research Initiative (GTRI) said companies relying on just-in-time manufacturing processes can be particularly vulnerable as they maintain low inventory levels and depend on the timely arrival of components and finished products. Few industries where production will be impacted due to disruptions in global value chains include electronics, automotive, machinery, chemicals, pharmaceuticals, plastics, textiles, and consumer goods, it added.

Red Sea Red Sea trade route GTRI Disruptions Global Value Chains 
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