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Red Sea Crisis Hits Toner Ink Pigment Industry Hard, Rates Going Up, No End in Sight.
The ongoing military conflict in the Red Sea has disrupted the global shipping industry, forcing many companies to pay higher freight costs and face longer delivery times. Among the affected sectors is the pigment industry, which relies heavily on the Red Sea route to transport its products around the world.
Heubach, a leading manufacturer of pigments and pigment preparations, announced that it will pass on the surcharges of the global carriers to its customers, as it can no longer absorb the extra costs. The company said that the situation in the Red Sea adds costs and time to the shipment of pigments and products, and that it is working hard to minimize the impact on its customers.
Flint Group, a global supplier of printing inks and packaging solutions, also provided an update on the effect of the developments in the Red Sea. The company said that multiple sea freight carriers have introduced surcharges due to the requirement for vessels to re-route via the Cape of Good Hope, which adds about 10 days to the transit time. Flint Group said that it is monitoring the situation closely and that it is in constant communication with its customers and suppliers.
Sun Chemical, a member of the DIC Group and a leading producer of printing inks, coatings and pigments, implemented freight surcharges due to the Red Sea crisis as well. The company said that with around 30 percent of the world’s container trade shipped via this route, many shipments are facing delays, and some are being rerouted. Sun Chemical said that it is doing everything possible to mitigate the effects of the crisis and that it appreciates the understanding and support of its customers.
The Red Sea crisis is a result of the escalating tensions between Iran and Israel, which have been exchanging missile and drone attacks since October 2023. The Iran-backed Houthi rebels in Yemen have also targeted several commercial vessels passing through the Bab el-Mandeb strait, a narrow waterway that connects the Red Sea to the Suez Canal. The Suez Canal is a vital link for international trade, accounting for about 12% of global trade and 30% of global container traffic.
The UN trade and development body, UNCTAD, warned that the Red Sea crisis is having a ‘dramatic’ impact on the global trade and supply chains, and that it could worsen the already strained situation caused by the COVID-19 pandemic. UNCTAD urged the international community to find a peaceful solution to the crisis and to ensure the safety and security of the maritime traffic in the region.
AuthorFebruary 10, 2024 at 4:50 PM
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