Miquel Àngel Salvà, vice president of the Pimem federation of small to medium-sized business associations, says that sectors such as construction, industrial and textile are forecasting price increases of between 7% and 15% because of the conflict in the Red Sea.
"Companies had already been stockpiling material, but when it runs out there will be a problem, to which will be added the increase in prices that suppliers are warning us about." Delivery times are lengthening from six weeks or two months to almost three months. "Textiles are the most worrying right now."
Businesses in the Balearics are no less immune to the disruptions to shipping than anywhere else. Regional governments in Spain, e.g. the Basque Country and Valencia, have warned of the supply-chain repercussions over the coming months.
However, the pandemic and the war in Ukraine have meant that businesses are better prepared to deal with these disruptions. This is the case in the nautical sector, for instance. The president of the association of nautical businesses, Jaume Vaquer, explains that most businesses have been keeping stock in their own warehouses.
"Three years ago everyone worked with the suppliers' warehouses to save on these costs, but now they keep the stock for whatever might happen. Everyone remembers what has happened in recent years. Four years ago was a dead stop, while the current situation is more progressive, so businesses are having more time to organise." Nevertheless, he adds that delivery times for supplies from Asia are doubling: "We have gone from three to six weeks."
Ezequiel Horrach of the distributors association believes that it is still too early to notice any great impact. For him, prior planning and supply are key to minimising the effects of delays. He trusts that the conflict will not fester and that the situation will be resolved before the start of the tourism season or else "we would find ourselves with a big problem".