Suez crisis, new opportunities for European manufacturing

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The Red Sea crisis may offer new opportunities to manufacturing companies across Europe because their products have become competitive again. «My job is to supply the 800 Kasanova stores with goods to sell at competitive prices and I cannot afford to leave them without goods» stated Maurizio Ghidelli, CEO of the brand specialized in the sale of housewares, furniture and home textiles, since company headquarters in Arcore, near Monza.

The Suez Canal crisis is the obstacle that slows down the flow of supplies to Kasanova and all commercial chains. A name for everyone, for example, is that of Inter Ikea Group which a few weeks ago issued a note in which it recalls that «The situation in the Suez Canal will result in delays and may cause availability constraints for some Ikea products» and that the furniture giant “in the meantime is evaluating other options to guarantee the availability of our products”.

Doctor Ghidelli, what is happening to the value chains that supply themselves in the Far East?

Circumnavigating Africa causes crazy increases in the final price of goods also due to speculation on sea freight. The cost of transporting a 40-foot container has gone from 1,500 to more than 7-8 thousand dollars. Not to mention the insurance. In a year we receive around 2,500 containers from China, India and Bangladesh.

What consequences do these increases in supply have?

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