Morocco stands as best industrial alternative to Asia amid Red sea crisis
The hijacking of commercial ships and drone attacks by the Iran-backed Houthi rebels have disrupted supply chains leading many in Europe to think of Morocco as an industrial hub and an alternative to Asia.
Weeks-long attacks on commercial vessels led global shipping firms- including Denmarks’s Maersk and Taiwan’s Evergreen- to avoid the Red Sea and the Suez Canal, opting instead for the longer detour around the entire African continent via South Africa’s Cape of Good Hope.
The longer route means additional shipping costs and late deliveries. The new journey will add from a week to ten days or about 6,482 kilometers.
About 60% of Europe’s imports comes through the Suez Canal, which accounts for about 15% of the global trade.
The disruption of supply chains and trade routes with Asia means that European investors seeking competitive production costs would relocate to closer destinations such as Morocco and Turkey, economy expert Pierre Cariou told French paper l’Express.
The North African Kingdom in particular has stood out during the pandemic as the best choice for European industrial operators seeking to shorten distances and reduce the fallout of geopolitical crises on supply chains.
