Chinese automaker Geely warns its Electric Vehicle (EV) sales will likely be impacted by the “situation” in the Red Sea, where Yemeni Houthis are attacking vessels in response to Israeli attacks on Gaza, Al Jazeera reports.

Geely told the Reuters news agency that most shipping firms it uses to export its EVs to Europe have plans to go around the Cape of Good Hope to avoid the Suez Canal due to the uptick in hostilities.

The company added that shipping firms are expected to adjust freight rates if the Red Sea issue remains unresolved, resulting in rising transport costs.

Several global shippers have already said they would avoid the Red Sea due to the Houthi presence.