Red Sea crisis: Global printer supply in peril?
January 4, 2024
Houthi attacks in the Red Sea threaten printer supply chains, potentially benefiting European manufacturers and sustainable printing solutions.
The ongoing conflict in the Red Sea, marked by Houthi rebel attacks on shipping, is posing a significant threat to global supply chains, potentially impacting the office printer market. The Houthis, a Shia Islamist group from Yemen, have intensified their assaults, disrupting a crucial maritime route for the transport of various components and raw materials used in printer production. The ongoing Saudi-led coalition’s military response to the Houthi insurgency adds further instability to the region.
This situation echoes the supply chain challenges experienced during the COVID-19 pandemic, where prolonged delays led to disadvantages for printer Original Equipment Manufacturers (OEMs). As these disruptions persist, European remanufacturers and the reuse and refilling sectors of printer consumables and hardware might gain another unintended advantage. In the face of these challenges, printer OEMs could find themselves at a competitive disadvantage, potentially leading to increased opportunities for European manufacturers and alternative, more sustainable printing solutions.
Instead of transiting the Suez Canal, the rerouting of ships around the Cape of Good Hope typically adds about 3,500 nautical miles to the journey. This detour can translate into an additional travel time of approximately 7 to 10 days, depending on the specific route and speed of the vessel.
The cost increase for rerouting ships around the Cape of Good Hope can be significant. This includes higher fuel bills due to the longer journey and increased insurance premiums in response to the heightened risks. Fuel costs typically account for a substantial portion of total shipping costs, ranging from 50% to 60%.
The crisis underscores the interconnectedness of global trade and the vulnerability of specific industries, like office printers, to geopolitical tensions. Manufacturers and businesses are urged to diversify supply sources and enhance logistics strategies to mitigate the impact. The Red Sea conflict highlights the necessity for industries to adapt and prepare for unforeseen disruptions in the global supply chain, emphasizing the importance of strategic planning and resilience in global trade and manufacturing.
Abby Wang from HYB Toner said in a message on the HYB website that “it is anticipated that only a limited number of vessels will be able to navigate from China through the Red Sea to the Mediterranean.”
HYB anticipates that shipping prices to the Mediterranean and Europe may increase by over USD 2000, while prices in the Mediterranean could rise by USD 1500. Ports in these regions are predicting a minimum increase of USD 20 per ton.
Categories : World Focus
Tags : Business Delays Price Increases Red Sea Reuse Shipping
