European companies that import semiconductors from Asia are tapping into backup stores and paying more for deliveries as the Iran war causes disruption to air freight routes through the Middle East, industry insiders have told CNBC.
The Iran war has caused turmoil to cargo routes as shipping and airports have been targeted since the war began on Feb. 28. Global air freight capacity — which transports cargo such as semiconductors and other high-value electronics — is down around 9% compared to pre-war levels, according to data from logistics firm DSV.
That’s led to rising costs for European companies importing semiconductors from Asia and delivery delays, as well as some manufacturers importing fewer chips from the region because of those capacity constraints.
Chips are a crucial component of all electronics. Companies from industrial giants and data centers to carmakers import certain chips from locations like China and Taiwan.
“What you’ll see in the next weeks is that inventory levels are trending down with the hope that [logistics costs] will normalize,” Stefan Krikken, DSV’s head of air freight, told CNBC, pointing to European automakers, which use semiconductors for a range of electronic systems on board vehicles.
