Panels & Furniture Asia March/April 2024

NEWS
Red Sea attacks affect shipments
from the EU to Asia
Global supply chains have been affected by
attacks on vessels in the Red Sea, resulting in
soaring freight rates.
In particular, the trade route to Asia from
European suppliers have been affected. To
avoid the Red Sea route, vessels are sailing
around Africa and this has disrupted delivery
schedules.
Aerial view on the harbor
of the Red Sea, Sinai,
Middle East
Ocean carrier MSC has reportedly increase
rates in response to this. Under the US
Shipping Act, ocean carriers must give a
30-day notice before raising rates, but the
Federal Maritime Commission has waived
this for shipments from Asia to the US routed
around South Africa’s Cape of Good Hope.
Swedish Forest Industries have been affected
by the attacks as well. According to Christian
Nielsen, market expert wood products
at Swedish Forest Industries, Sweden in
particular is hit badly and costs have jumped
by 100-200%.
Going around the Cape of Good Hope instead
of via the Suez Canal can take up to 30 extra
days for a round trip, she said.
“The current situation may continue for some
time and result in cost increases, but above all
increased uncertainty for the industry and for
forest industry customers,” she said.
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“However, since the autumn, there has been
overcapacity of containers and vessels. Until
now, shipping rates from Europe to Asia have
been unusually low, which reduces near-term
risk and helps calm the situation somewhat.”
There are a few alternatives to sawnwood
imports from Europe, which appears to affect
finished product prices in the region.
Sweden is one of the world’s largest producers
of pulp, paper and sawn wood products. Eighty
percent of Swedish forest industry products
are sold to other countries. P
Source: ITTO, Swedish Forest Industries
MARCH / APRIL 2024 | PANELS & FURNITURE ASIA 9