Episode 1118: Think Tank: UK distributors face higher costs, margin pressure from Red Sea disruption
As more shipping is diverted away from the Suez Canal, supply chains in the UK are being stretched as shipping capacity is reduced and container rates rise. - UK distributors under pressure as Red Sea disruption increases shipping costs, disruption- Shortages of capacity as vessels at sea for longer - Container rates have doubled, shipping companies unwilling to guarantee space- Demand spikes as supply chains build safety stocks- High stock levels have mitigated impact of logistics disruption- Logistics crisis has dampened optimism for 2024 recovery - Consumer confidence hurt by cost of living crisis, political uncertainties- Chemical Business Association working with government on UK Reach- China’s economic problems impact chemical markets everywhere