Recycling companies are grappling with the unexplained price hikes for shipments to Asia, says ERPA

Recycling companies are grappling with the unexplained price hikes for shipments to Asia, says ERPA
Red Sea Crisis Threatens Recovered Paper Exports

11 January 2024 | The Pulp and Paper Times

In the wake of the recent Houthi attacks on commercial shipping in the Red Sea, the recovered paper industry is grappling with unforeseen challenges, particularly in the form of price increases for shipments.

The repercussions are felt in the recovered paper sector, with the decision to reroute ships creating a myriad of issues—escalating shipping costs, order cancellations, delays in container movement, and an overall sense of uncertainty regarding future developments. The situation demands attention, urging recovered paper companies to engage with shipping companies, freight forwarders, and logistics service providers to understand the actual impact on freight.

EuRIC stresses the need for measures to enhance supply chain resilience against disruptions and boost European end markets, considering the crucial role of unrestricted material flow in a circular economy. In that respect, ensuring that international maritime transport supports and does not hamper free and fair trade, as well as undistorted competition, is essential.

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 real extra costs, but the current rates are unacceptable.  No one should take advantage of the current geopolitical 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 ensuring that there are no unjustified charges.
 

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