Spain’s Red Sea Disruption hits Alicante’s Supply Chains
The looming maritime conflict surged into reality as attacks by Houthi forces in Yemen affect shipping lanes through the Red Sea. The repercussions are already echoing in the Alicante province, where goods delivery faces longer waits and prices keep climbing. Major carriers have paused routes through the Suez Canal, pushing Asia-to-Europe imports to travel an extra 8,000 kilometers. The consequence is a roughly twenty day delay on voyages and costs that have surged to four times their typical levels. Footwear and textiles were among the first to feel the squeeze, and other sectors are watching closely as the situation unfolds.
Industry insiders say the broader downturn in consumer spending is squeezing company profits. The Red Sea crisis compounds an already fragile environment, turning feared price increases into reality while shipments from Asia move slower. In the first ten months, the state bought 1,823 million euros of products from Asian markets, accounting for 39.5 percent of total purchases, underscoring how vital these supply routes are.
Within Alicante, the footwear sector recorded purchases of 564 million euros in the first ten months of 2023. Marián Cano, president of the Association of Footwear Entrepreneurs of Valencia, notes persistent delays of twenty days or more due to detours ships must take. He emphasizes that for a fashion driven industry where meeting delivery deadlines is critical, these disruptions are a real challenge. The combination of delays and rising costs could complicate replenishments and future collections, making price-setting a delicate task for manufacturers.
On the same note, Manuel Román, president of the Spanish Association of Footwear Components, highlights that the industry is facing substantial price increases with no clear trend for the weeks ahead. The fact that most imports from China are raw materials alongside finished goods adds a similar pressure to textiles, another sector already suffering from Red Sea disruptions. Pepe Serna, head of the Association of Textile Entrepreneurs in the Valencian Community, points out that container costs have quadrupled to about 6,500 dollars. He warns about unforeseen expenses and the broader impact on production timelines.
The plastics sector shows a different pace, with a slower impact as firms gauge how much post-holiday production will shift. Industry leaders anticipate delays and higher costs as suppliers begin to adjust to new material flows, predicting a shift within a short window.
The toy sector has also slowed after the Three Kings campaign, awaiting major trade fairs to resume. José Antonio Pastor, director general of the Spanish Association of Toy Manufacturers, cautions leaders to monitor early signs as production restarts. Underscored is the broader context for Alicante’s key industries, where ceramics, appliances and food producers face the same cost pressures as CMA CGM raises pricing, a move mirrored by MSC, effective from January 15.
Meanwhile, the Port of Alicante remains resolute and does not anticipate severe traffic disruptions from the Red Sea crisis. Institutional sources say the port’s operations should stay steady, though they acknowledge higher costs for goods moving through the region are likely. Local businesses expect a normal flow overall, with price pressure spreading across supply chains in the wider market.