Red Sea unrest leads to shipment cancellations for PVC from Taiwan to Türkiye, Europe

According to a letter the company sent to its customers on Friday, Taiwan’s Formosa will terminate all its un-shipped CIF PVC cargoes to Europe and Türkiye, effective as of January 12, 2024.

The company pointed to the ongoing turmoil in the Red Sea route that had unexpected and grave consequences on shipping. Major shipping companies like Danish Maersk and German Hapag Lloyd suspended all their shipments through the region, which led to fewer options for Formosa’s cargoes to reach their destinations.

Formosa also said that it negotiated with other shipping companies to ensure a steady shipment to its customers, however, as the tension in the Red Sea heightened, other shipping companies eventually followed Maersk and Hapag Lloyd and halted their shipments as well.

Since the situation is still unclear for the Red Sea with rebel groups continuing to attack vessels, the company had no other choice but to terminate the un-shipped shipments. “Considering such circumstance is beyond our reasonable control under the force majeure clause in our contract, we would like to terminate all un-shipped CIF shipments to Europe and Türkiye areas with effect from January 12, 2024,” the company said.