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Red Sea Crisis Threatens Recovered Paper Exports

11 January 2024

* This statement was updated on 12 January, 18:30.

 

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.

 

Note to editor:

For press-related enquiries, please contact Zoi Didili, EuRIC Communication Advisor, by email at This email address is being protected from spambots. You need JavaScript enabled to view it. or by phone at +32 (0) 489 09 46 02.  The European Recycling Industries’ Confederation (EuRIC) is the umbrella organisation for the recycling industries in Europe. Through its 75 members from 23 European countries, EuRIC represents more than 5,500 large companies and SMEs involved in the recycling and trade of various resource streams. They represent a contribution of 95 billion EUR to the EU economy and 300,000 green and local jobs. By turning waste into resources, recycling reintroduces valuable materials into value chains over and over again. By bridging circularity and climate neutrality, recyclers are pioneers in leading Europe’s industrial transition.