Red Sea crisis threatens recovered paper exports

Following the recent Houthi attacks on commercial shipping in the Red Sea, the recovered paper industry is facing unexpected challenges. As a result of the attacks, there have been price hikes for shipments, which has affected the recovered paper sector.

The decision to redirect ships has created various problems, such as increased shipping costs, order cancellations, container delays, and uncertainty about future developments.

It is important for recovered paper companies to communicate with shipping companies, freight forwarders, and logistics service providers to understand the impact on freight.

EuRIC stresses exploring alternative routes and implementing measures to enhance supply chain resilience against disruptions and boost European end markets. Additionally, EuRIC calls on the EU to ensure that incidents of monopolistic behaviour of the shipping lines are addressed and that waste shipments for recovery operations are safeguarded.

Hans van de Nes, President of EuRIC’s Paper Branch (ERPA), said: “Recycling companies are grappling with the unexplained price hikes for shipments to Asia. We are willing to cover the extra costs, but the current rates are unacceptable.  It seems shipping lines might be taking advantage of the current situation.”

As the recovered paper sector closely monitors the geopolitical situation in the Red Sea in the coming weeks, the hope is for stabilisation, a reduction in shipping disruptions and a bold EU intervention to protect the recycling industry in Europe.

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