The escalation of the situation in the Red Sea will impact the global supply chain
Another potential impact on the current bathroom and home furnishing supply chain is the recent Red Sea situation. In recent days, due to the influence of the Houthi armed forces in Yemen, many shipping companies have announced the suspension of navigation in the Red Sea. Affected by this, freight rates on the Asia-Europe route have risen sharply. At present, many shipping companies have no choice but to reroute ships around the Cape of Good Hope, which will increase the sailing time from Asia to Northern Europe and the Eastern Mediterranean by 10-14 days, and increase freight costs by 40%-60%.
In the sanitary ware industry, many countries in the Middle East are the main export destinations for my country's sanitary ceramics. Exports to Saudi Arabia, Iraq, Egypt, Israel and other countries are facing delays or even supply cuts.
Also affected are the supply chains of various industries around the world. According to the "Nihon Keizai Shimbun" report, on the routes connecting Europe, the United States and Asia, the transportation of about 47% of toys, 40% of home appliances and clothing may be affected by rising freight rates and delayed arrivals. In terms of industrial raw materials, 24% of chemicals, 22% of automotive steel plates, and 22% of insulated wires and batteries will be affected, and some raw materials will even be difficult to deliver.
It can be expected that if the situation in the Red Sea continues to deteriorate, it may further impact the global supply chain, push up inflation again, and cast a shadow on the prospects for global economic recovery.
XIAMEN DELMEI SANITARY WARE CO., LTD. is a leading manufacturer of high-quality bathroom products and kitchen faucets, including showerheads, lift rods, shower columns, spray guns, faucets, faucet handles and other products and related accessories. We are good at the design and manufacturing of shower heads and faucets. We are committed to becoming the world's leading OEM/ODM overall solution provider, providing world-class qualified products and committed to excellent customer service.