Many shipping companies have decided to re-route their ships around the Cape of Good Hope rather than attempt the passage, a journey which can add 14 to 21 days and significant risk of storm damage.
With a finite number of container ships in the world, and a significant increase in transport time for many of those ships, global shipping capacity could be cut by as much as as 20%, according to Swiss logistics firm Kuehne & Nagel.
Industry bodies were consulted by the government before Christmas on the potential impact of the disruption, which was instituted in October by Houthi forces.
The Houthis, who form Yemen’s de facto government, claim the attacks are in retaliation for Israel’s war in Gaza, and that they are targeting companies that do business with Israel.
Brendan Perring, general manager of the IPIA, told Printweek that if the Suez is not reopened within the next three months, manufacturers may have to start passing costs onto their customers.
He added that around 90% of the inks, manufacturing equipment, and spare parts used in the industry are manufactured in East Asia, with toner particularly at risk because so much is manufactured in Japan.
He said: “If the crisis goes on longer than [three to six months], and you have this significant drop in overall shipping capacity, it will cause real issues.
“The second consequence – and we saw it when the Evergreen [ship] blocked the Suez canal for just a week [in March 2021] is that it becomes a seller’s market. You have a huge amount of demand, and a shortened supply – prices for shipping containers will go up very significantly.”
Global air freight is hardly an option, he added, because it already operates so close to capacity.
Companies’ past experiences with global supply issues in the past several years – first with the Evergreen ship, and then with China’s extended lockdown – have led to a greater resilience, however, Perring added.
He said: “On the positive side, the last crisis did see our supply chain put in a lot of contingency plans, and build resiliency into the system with stockpiles.
“Had this crisis happened two or three years ago, it would be much worse than it is now – so we have a much longer lead time in terms of contingency, where the supply chain can soak it up before it becomes a problem.”
A variety of imported print products including books and some luxury packaging also originate in the Far East.
