Escalating disruptions to maritime routes affecting recycling
As the conflict in the Middle East unfolds, the Bureau of International Recycling (BIR) has issued a shipping warning.
Today oil prices are surging and many markets are affected by the ongoing geopolitical issues. The situation is already disrupting shipments and supply chins, delaying contract fulfilment and creating uncertainty around delivery timelines.
Begium-based BIR reports that some members are already confronting non-shipment or non-delivery scenarios with contractual and financial consequences. At the same time, reports indicate that war risk insurance coverage has been withdrawn or restricted on certain routes, while shipping lines have introduced wartime surcharges, which might further increase.
The BIR warns that, given the global nature of the recycling industry, the disruptions may slow the movement of recycled materials across continents, particularly from and through the affected region.
Recycling is not the only industry affected as the conflict covers a wide trade corridor - oil, gas, plastics and aluminium are all currently impacted.
