Taiwan’s Formosa declared force majeure on PVC shipments to Turkey, the EU due to shipping challenges

In an official statement released on 12 January 2024, major Taiwanese producer – Formosa Plastics Corporation (FPC) has declared force majeure on all un-shipped shipments to Turkey and Europe due to renewed vessel and container shortages.

The escalating strikes by Houthi rebels on ships in the Red Sea since December 2023 have created a substantial safety concern in the region. Shipping giants such as Maersk and Hapag-Lloyd have taken precautionary measures by suspending their Red Sea routes, with other companies opting to either divert their ships through longer routes or cease sailing through the Suez Canal altogether.

“We have made every effort to negotiate with various shipping companies to secure more shipping spaces, but the outcome was to up to expectation,” the statement added. 

FPC is known for its strong influence on the Asian PVC market for its sheer size and long-standing role in the sector. As the producer halted shipments to deep-sea destinations, Asian customers expect a surge in allocation from the maker for February shipment, which might pressure the market in the run-up to the Lunar New Year holiday.