Red Sea shipping disruptions ripple through Asia-Europe supply chains

TOKYO -- Political turbulence in the Red Sea is forcing global shippers to make more costly journeys and increasing pressure on companies to review their supply chains and prepare for a new norm characterized by longer transportation distances.

"The market will need to adjust to longer transit times. For everybody dependent on containerized trade, it means the supply chains have to adjust," said Peter Tirschwell, vice president for maritime & trade at S&P Global Market Intelligence. "It means planning has to be accelerated, the manufacturing has to be accelerated. It means a greater commitment of working capital to inventory."