Suez Canal Crisis To Cause Toilet Paper Shortage
The massive cargo ships prevented from traversing the Suez Canal must turn south toward the Cape of Good Hope, adding two weeks to their travel time. Because of this delay in the delivery of goods, a toilet paper shortage is imminent. The only question is precisely when this will happen.
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Toilet paper is among a very long list of items used by consumers, industries, businesses, and governments that will not be JIT (just in time). Ikea expects its stores will not have the many items they usually do, and items will be placed in back order categories. Due to Houthi rebel attacks on ships on the Red Sea, UK retailer Next told Modern Retail that many spring items would be two and a half weeks late. When the Ever Given container vessel got stuck in the Canal in March 2021, apparel and footwear makers faced shortages for weeks.
Slow Boats
Other items that experts report that will be delayed due to attacks on ships in the Red Sea include grain, iron, and timber. Tesla has already stopped production at its German plant because of part shortages that have begun. Germany’s RTL reported, “As transport routes are shifting, a gap has arisen in the supply chains, as Tesla announced. The missing components are overseas components. Tesla did not provide any details.” The list of delayed materials on these cargo ships is extensive.
The toilet paper shortage is an excellent example of how the delay in transport affects consumers. The 2021 Suez Canal Ever Given container vessel incident caused an immediate shortage. Brazil is the top provider of pulp. Brazil-based Suzano accounts for about a third of global supplies of hardwood pulp, which is used to produce toilet paper. The company invested R$650 million ($125 million) in constructing a tissue paper mill in Espírito Santo in Brazil, which management said was due to brisk demand. This will add 340 thousand tons of fluff (cotton fiber)and 60 thousand tons of tissue to Suzano’s production capacity. This increase in toilet paper production may now have to be delayed since it can not be delivered.
In the scheme of things, a shortage of toilet paper seems insignificant. However, it is a sign of a much bigger problem.
