Sen. Markwayne Mullin, R-Okla., responds to U.S. and British military strikes against Houthis in Yemen and weighs in on the Iowa caucuses on The Bottom Line.
Tesla and Volvo announced last week that they would halt some production in Europe due to a shortage of components caused by rerouting shipping from the Red Sea and Suez Canal because of the threat of attack by Iran-backed Houthi fighters Yemen.
Tesla told Portal on Thursday that it would halt most car production at its Gigafactory near Berlin from January 29 to February 11 due to a shortage of components that were on ships traveling from the Red Sea and the Suez Canal were redirected to the area around the Cape Good Hope at the southern tip of Africa.
“The military conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are impacting production in Grünheide,” says a Tesla statement. “The significantly longer transport times lead to a gap in the supply chains.”
HOUTHI ATTACKS ON RED SEA SHIPPING COULD RECONSTRUCT A GLOBAL SUPPLY CHAIN CRISIS
Maersk and other shipping companies have rerouted ships from the Red Sea and Suez Canal around Africa via the Cape of Good Hope to avoid threats from Iran-backed Houthi fighters. (Photo by Marcus Brandt/picture Alliance via Getty Images / Getty Images)
At the Berlin-Brandenburg Gigafactory near Grünheide, Tesla assembles electric vehicles that it sells in Europe. The company did not provide details about the component delays affecting the factory's operations.
| ticker | Security | Last | Change | Change % |
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| TSLA | TESLA INC. | 218.89 | -8.33 | -3.67% |
Volvo, which is majority owned by China-based Geely, said it will halt production at its factory in Ghent, Belgium, for three days next week due to a late delivery of transmissions.
Due to Houthi attacks on shipping and rerouting of ships around Africa, some tanker operators have also stopped sailing through the Red Sea, as have shipping giants such as Maersk and Hapag-Lloyd. Maersk said in early January that it expects the diversion, which will take about 10 days and involve $1 million in additional fuel costs, to continue for the foreseeable future.
OIL TANKERS DEVIATE COURSE FROM THE RED SEA FOLLOWING JOINT US AND UK AIR ATTACKS ON THE HOUTHIS IN YEMEN
In this photo published on November 20, 2023, a Houthi military helicopter flies over the Galaxy Leader cargo ship in the Red Sea. (Houthi military media/Handout via Portal/File Photo / Portal Photos)
Iran-backed Houthi fighters protested against Israel's war against Hamas in Gaza. Although the Houthis have said they would only target Israeli ships or ships destined for ports in Israel, many of the ships attacked had no connection to Israel.
A group of 14 countries, including the US, issued a joint statement last week saying: “The Houthis will bear responsibility for the consequences if they continue to disrupt lives, the global economy or the free flow of trade on the country's vital waterways “Threaten the region.”
A plane takes off to join the US-led coalition in carrying out airstrikes against military targets in Yemen. The target is the Iran-backed Houthi militia, which has attacked international ships in the Red Sea from an unknown location this… (US Central Command via X/Portal / Portal Photos)
The US Navy and the British Royal Navy have shot down drones and missiles fired by the Houthis at ships in the Red Sea. They are part of an international mission called Operation Prosperity Guardian, which aims to protect shipping in the region from Houthi attacks and piracy.
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Last week, the US and Britain joined several other countries in launching airstrikes against Houthi targets in Yemen to counter the threat.
FOX Business's Bradford Betz and Portal contributed to this report.