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Tesla will close its gigafactory in Berlin for about two weeks, from January 29 until February 11. This decision was a consequence of the shortage of components resulting from the blockade of the Red Sea.
The Red Sea is an important sea route connecting Asia and the Mediterranean via the Suez Canal in Egypt. The canal transports about 1/8 of the world's trade and 1/3 of the world's container traffic, and is especially important for shipping between Asia and the Mediterranean.
There have been supply disruptions across the Red Sea before. Around 2010, piracy was a problem off the east coast of Africa and in the Gulf of Aden, especially around Somalia, and it escalated during the Somali Civil War. But Somali piracy has been largely dealt with, and currently it no longer has a significant impact. But now a new problem has arisen.
To reach the Red Sea, ships must pass through the Gulf of Aden and the Bab el-Mandeb Strait off the coast of Yemen. But Yemen, one of the world's poorest countries, has been in civil war for 10 years. The Yemeni government, backed by Saudi Arabia and the United States, is fighting an Iran-backed group called the Houthis. The Houthis have declared a blockade of the Bab el-Mandeb Strait in response to Israel's counter-terrorism operation in the Gaza Strip. The Houthis have announced their intention to attack commercial ships heading to the Red Sea.
As a result, global shipping companies rushed to reorganize their routes to avoid the Red Sea and the Suez Canal. Now ships are heading south to circumnavigate all of Africa. This results in a longer route than going through Suez. As a result, ships have to travel several thousand additional kilometers and travel a week (or more) longer.
As such, Tesla will face significant delays in the supply of vehicle parts to its Berlin plant. Due to a lack of parts, the company will stop most of its car production and wait a couple of weeks for new parts to arrive.
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Shipping companies said these disruptions were likely to continue for the foreseeable future and advised companies to improve inventory management in the meantime. Other companies have announced similar production disruptions for the same reason.
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