The crisis on the Red Sea hits Italy: many sectors are affected by the emergency

As the weeks pass, the crisis on the Red Sea becomes increasingly important, and the effects on Italy and Made in Italy are starting to be felt heavily: although still far from the devastating numbers of the pandemic, in fact. the crisis on the Red Sea is starting to impact Italian import-export in a disruptive way.

It is not only exports to Asia and Oceania from Italy that are affected: they are also going into crisis industrial production, subject to the scarcity of raw materials and basic components that should arrive in Italy transiting on board ships passing through the Suez Canal.

Delays and costs almost tripled: what risks from the Red Sea?

According to the Bank of Italy's estimate, the specific weight of the Red Sea on Italy is summarized as 16% of Italian imports of goods in value: a number that involves various production sectors including the fashion industry, agri-food and wood-furnishings.

As reported by The Sun 24 hoursin fact, the Italian fashion supply chain "depends" on Japan, India and China for fibres, fabrics and components such as zips; severe delays – which currently range from 2 weeks to 1 month – are seriously compromising the production chain.

However, it is not just the delays that create problems: compared to the beginning of the year, shipping a container from Genoa, Naples or Trieste to China requires a cost increased by 231%; devastating numbers which, if added to the increase in fuel costs and the search for faster means to avoid paralyzing the supply chain, risk having inexorable repercussions on the final consumer.

Various production chains at risk in the medium-long term

As anticipated, however, this situation encompasses not only the fashion, but also the 'agri-food – here there are difficulties in the supply of products and technical means for agriculture, such as fertilisers, in addition to the damage caused by the slowdown in the export of Italian agri-food products abroad and in particular to Asia and Asia. 'Oceania – and the wood furniture – for this sector, in the first ten months of 2023, imports arriving in Italy via the Suez Canal reached a value of approximately 1,9 billion euros, 19% of the total imports, while for exports we are talking about by 15%, as much as 2,5 billion.

Overall, the cost of the crisis on the Red Sea for Italy is really high: approximately 95 million euros per day. A cost which, implicitly, could influence inflation: a fact which is still underestimated by the markets, at least for the moment.

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