China-Europe freight route a 'crucial lifeline'

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Houthis in Yemen have been attacking commercial ships "affiliated with and bound for Israel" since November in what they described as an act of solidarity with Palestinians in the Gaza Strip. Their actions have raised the risks for transportation companies moving cargo through one of the world's busiest shipping lanes, resulting in a surge in rates and lengthy delays.

The Red Sea is an essential part of the ocean freight passage linking Europe and Asia. About 60 percent of Chinese trade with Europe transits through the Suez Canal, which involves passing through the Red Sea, according to a recent report by Fitch Ratings.

Some smaller-volume goods have shifted to rail transportation, notably on the China-Europe railway line, where the capacity to transport goods from China to the continent has increased significantly from the pre-crisis level, according to the report.