Container crisis threatens toilet paper shortage

One of the main victims of the new imbalance in global shipping could be toilet paper. The largest producer of raw materials for this product has already warned of supply problems, writes Bloomberg.

Brazil's Suzano SA, which accounts for about a third of the world's supply of hardwood pulp, mainly ships it as general cargo, meaning in packages rather than in bulk or in standard containers. Given the sharp increase in container freight, it is becoming less and less profitable for carriers to transport such goods, which already threatens with delays in deliveries, said Walter Schalka, CEO of the company.

With demand for toilet paper soaring during the pandemic and a tendency to stockpile it, delivery problems can only get worse, Suzano chief warns. Significant pulp shortages could eventually affect toilet paper supplies if manufacturers do not have sufficient stocks.

Suzano is likely to export less than expected in March, which will force it to reschedule some deliveries to April, Schalka said. All South American general cargo exporters face a similar risk, he added.

• The crisis due to the shortage of containers, caused, among other things, by strong demand from China, has been going on for several months. It especially affected the supply of food and agricultural goods. Suzano's statement, notes Bloomberg, points to the spread of the crisis to other markets. If this situation continues to increase freight, this may result in an acceleration of inflation.

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