Covestro sees further shipping surcharges after Red Sea disruption

(Reuters) – Covestro expects additional surcharges for ocean transport following disruption to shipping in the Red Sea caused by attacks by Houthi militants in Yemen, the German chemicals maker told Reuters on Wednesday.

“Temporarily, we are expecting to bear additional surcharges for ocean transports, yet overall these are insignificant compared to overall spend,” – Covestro said in an emailed reply to Reuters.

The company added it frequently informs clients about apparent delays and has set an internal task force to deal with the situation.

Covestro, whose main products include foam chemicals used in mattresses, car seats and building insulation, said it has a strong regional footprint so is less exposed to the disruption than peers.

(Reporting by Andrey Sychev; Editing by Madeline Chambers)