Alicante industry look together with to worry The decision of major shipping companies to suspend routes through the Red Sea and the Suez Canal, given the attacks on many ships by the Houthi militia in retaliation for the Israeli occupation of Gaza. A decision involving Stretches more than 8,000 kilometers the journey between the major Asian countries and the peninsula – or, in other words, a journey taking another six to fourteen days to cross the African continent – which increase in freight prices and their lower availability.
What happens in 2021, when the grounding of Evergreen is already mandatory, is on everyone’s mind Close this sea crossing for just six daysbut their effects were noticeable for months In supply chains. It’s a pretty big problem if you take that into account Almost 40% of the state’s imports come from Asia and the vast majority arrive by boat via this route.
A situation that particularly affects sectors such as shoes and toys, which still holds a large share of the space in this field despite the relocations to closer countries due to the pandemic. production they outsource.
Specifically, between January and October, according to the latest ICEX data, the state 1.823 million euros, This represents 39.5% of the border’s total imports. Chinese It stands out as the main supplier with 1,198 million euros, which constitutes 26% of all supplies received by Alicante companies from abroad. VietnameseWith 172 million euros; the IndiaWith 120 million; Taiwanwith 58 million; And South Korea, With 35 million euros.
offshore
By products, highlights shoeadding value to purchases over ten months with the latest statistics available 564 millionIn this continent, where many companies in the sector decided to move a large part of their production there in order to save costs in the early 2000s, others should be added to this figure. 114 million in leather goods.
“We are concerned that the attacks on shipping companies in the Red Sea will turn into a new dimension.” increase in transportation costs and that these things happen supply chain delays worldwide”, appreciates the president of the Valencian Association of Footwear Entrepreneurs (Avecal), Marian Cano.
A concern shared by the director general of the Spanish Association of Toy Manufacturers (AEFJ). José Antonio Pastor. “With Evergreen It took six months for the situation to return to normal. We’re talking about almost doubling the trip, so recalculate times for all types of materials“says Pastor, who also points out the impact this could have on exports due to the overall increase in transportation costs.
In this case, the industry receives both finished products from Asia and redistributes them among its customers, as well as parts and components, especially electronics. Total sector purchases in this field until October this year 94.3 million euros. A figure similar to that represented by other plastic manufacturers (94.5 million), to which rubber products need to be added as well as around 40 million.
raw materials
However, if oil and with it oil prices continue to rise, this could even affect the products produced in the state. polymers Representing the main raw material of Ibi’s strong plastic industry, as acknowledged by the director of the Ibiae employers’ association, Hector Torrente. “If supply chains get longer, that means: fewer products available and price increases This could affect everything,” insists Torrente, but he is confident that the situation can be resolved soon.
In addition, among Alicante’s imports from Asia, those related to the sector also stand out. Textile -approximately 120 million yarn and fabric, 140 million ready-made clothing-; the machinery and mechanical devices (106 million) or electrical appliances and suppliesThis adds another 123 million euros.
In this context, the president of the autonomous employers’ association CEV, Salvador NavarroHe points out that this situation will not lead to a blockade of international trade, but he points out that “ships will be paralyzed and diverted.” will delay arrival at destination, disrupt logistics plans will increase delivery times and transaction costs. “All this in a context where companies are already enduring an overall increase in costs.”
Also, in parallel, remember: “Conflict is already Increases in gas and oil pricesIf this continues, it will once again increase the energy costs of companies, and more importantly, companies in the production branches with the most energy consumption.
Up to eight major shipping companies have already eliminated the route
The Houthi militia’s decision to attack ships passing through the Red Sea in revenge for the Gaza invasion has already led to at least eight major companies deciding to change their routes to avoid the crossing, forcing ships between Asia and Europe to circle Africa. continent. Thus, while shipping companies such as Swiss MSC, French CMA-CGM, Danish Maersk and German Hapag-Lloyd have made this decision, Chinese shipping companies such as Cosco, OOCL and Ebergreen Marine have also participated. Oil company BP joined them in announcing that its ships would avoid the residential area despite the increased costs in order to guarantee the safety of the crew. According to China’s EFE, these announcements have already caused freight prices to skyrocket and have also increased crude oil prices.