More supply chain disruption looms over Red Sea incidents

Outside influences, this time war, threaten to disrupt the supply chain once again, with the Red Sea and Suez Canal seeing drone and missile attacks.

The Israel and Hamas war is reportedly to blame, initially affecting ships bound for Israel which were targeted by drone and missile attacks from militants. However, ships with no connection to Israel are also being targeted. In response, oil giant BP has paused shipments of oil through the Red Sea (with probable consequences for the price of fuel and therefore local distribution).

The Red Sea and Suez Canal are crucial links in the global supply chain. The canal was hit by the more benign but still significant disruption when the container ship Ever Given got stuck and blocked the canal for a period of days in 2021.

It’s a moot point whether the disruption will greatly affect the cycling industry. How long the militancy lasts is clearly a factor. The bike market is currently over stocked too, so arguably a lack of supply won’t necessarily be hugely disruptive. However, with much of the cycle industry manufacturing in the Far East, the potential for another significant period of supply chain upset seems to be upon us again.

Of course, it’s hardly the biggest concern in relation to the awful human cost of this war, but nevertheless one that can affect livelihoods and businesses in the cycling industry. During the period of container pricing inflation in the earlier months of this decade, product costs increased as well as related pressures on distributors, importers and retailers.