European Chip Importers Face Rising Costs and Delays Amid Middle East Conflict

According to CNBC, industry insiders report that the ongoing conflict in Iran has disrupted air routes through the Middle East, leading to increased costs and delivery delays for European chip importers. Since the outbreak of hostilities on February 28, airports and shipping routes have been frequently attacked, causing chaos in freight operations. According to Jin10, logistics company DSV indicates that global air freight capacity, primarily used for transporting high-value electronics like semiconductors, has decreased by approximately 9% compared to pre-war levels. DSV's air freight director, Krikken, stated that inventory levels are expected to continue declining in the coming weeks, with hopes that freight rates will return to normal. He noted that European car manufacturers are feeling the impact, as many buyers have not significantly reduced imports but have started paying premiums to ensure delivery. An informed source revealed that a European chip company is experiencing delivery delays of several days, with air freight costs rising and future trends remaining unpredictable.