Toilet paper could be the next victim to the world’s container ship crisis, says an article published in The Print.
Production halt
One of the biggest producers of wood pulp (the main raw material for toilet paper), Sao Paulo warns that the global crunch in shipping containers could start creating supply snags.
CEO of Suzano on break bulk
Sao Paulo-based Suzano SA primarily ships its pulp in cargo vessels known as break bulk.
“With demand surging for ships that carry ribbed steel containers, the squeeze is starting to spill over to break bulk and threatens to delay the company’s shipments,” Chief Executive Officer Walter Schalka said in an interview.
Risk of exporting less
Suzano is already concerned about the risk of exporting less in March than the company had expected, and being forced to roll over some shipments into April.
“With competition increasing for cargo vessels, break-bulk ships are berthing at the company’s terminals less often than usual.All the South American players which export through break bulk have faced this risk,” Schalka said
Cargo market disruption
Cargo-market disruptions are playing havoc on global trade, especially for food and agricultural products.
Port traffic has gotten snarled, freight costs have gone up and deliveries have slowed. The container crisis, sparked by huge demand from China, has been playing out for months.
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Source : The Print
