Red Sea Shipping Threats Give Boost to U.S. Plastics Exports
• U.S. polyethylene exports likely to increase in January as Red Sea shipping threats raise costs for Mideast and Asian suppliers • Shipping companies avoiding Red Sea, causing freight costs to skyrocket on affected routes • Higher shipping costs make Mideast and Asian suppliers less competitive in markets like Latin America, Europe, Africa • North American producers to gain opportunities to sell outside of Asia and Latin America • If Red Sea remains closed for months, could reduce global shipping capacity 20% and generate inflationary pressures