February 26, 2024
Industry

Sun Chemical Addresses Global Freight Challenges Amid Red Sea Crisis

In response to the ongoing geopolitical instabilities affecting maritime transportation through the Suez Canal and Red Sea, Sun Chemical has announced the implementation of selected freight surcharges on a global scale. Since November, the region has experienced severe disruptions, impacting approximately 30% of the world’s container trade. Delays and rerouting through the Cape of Good Hope have become routine, adding both costs and time to shipments, while cargo air freight is witnessing increased demand to circumvent longer diversions.

Safety measures, shipment delays, container rotation and port congestion are affecting vessels departing from China, India and the Far East. Journey extensions of at least 20 days outward and 20 days upon return are becoming commonplace, invoking several force majeures. The situation is also causing notable cost increases and poses a potential threat to the availability of raw materials.

As a proactive response, Sun Chemical is closely monitoring the evolving situation through its extensive global network of partners. The company’s primary focus is on ensuring uninterrupted supply of high-quality products and services to its customers. In the light of the dynamic nature of the crisis, Sun Chemical is taking necessary steps to secure raw materials and minimize transportation delays.

While committed to mitigating rising costs whenever possible, the rapid escalation in freight cost pressures has led Sun Chemical to introduce some unavoidable freight surcharges. The company emphasizes transparency and collaboration with its customers, intending to communicate specific adjustments directly. This strategic approach reinforces Sun Chemical’s dedication to providing reliable and innovative solutions amid unprecedented global disruptions.

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