The NBRA has warned of increased parts supply disruption and rising costs within the UK repair sector as a result of instability in the Red Sea.
The Red Sea is a vital shipping lane between the Mediterranean Sea and Indian Ocean, but regional conflict has closed the Suez Canal, forcing ships to take much longer and more hazardous journeys.
Extended shipping routes could disrupt the timely delivery of parts – Tesla has recently suspended most car production at its Berlin factory due to a lack of components – while also leading to increased operational costs for bodyshops.
The NBRA said, “The ripple effects of tensions in the Red Sea are reaching far beyond the realm of geopolitics, impacting industries worldwide. The body repair industry in the UK has and is grappling with supply chain disruptions, increased costs, and operational challenges as a result of extended shipping journeys.
“Navigating these issues requires a strategic approach, with businesses in the sector needing to adapt to the evolving landscape of global trade and maritime security. As the situation unfolds, it becomes imperative for stakeholders in the body repair industry to monitor developments closely and proactively implement measures to ensure the resilience of their operations.”
ARC360 Partner, Prasco UK has said its customers are unlikely to be affected by the situation even though the Doncaster-based parts supplier is experiencing rising shipping costs and up to a two-week delay in receiving goods because of the escalating problems.
Kelvyn Waugh, Managing Director for Prasco UK, the country’s leading supplier of independently certified replacement parts, stated that this week he has seen freight costs double compared to the pre-Christmas period meanwhile items that should have been delivered are still in transit.
But, because of the closely working partnership between Prasco’s procurement team and its suppliers, measures were put into place as early as last October to ensure stock levels at the company’s distribution hub are at record levels.
Kelvyn said: “We’ve been closely monitoring the situation in the Red Sea for some time and we have taken measures to ensure that, hopefully, our customers will not be affected.
“Seasonally, because of the demand in replacement parts needed at this time of year, we always increase our supplies in the early autumn. However, we have taken that to another level by increasing our orders to ensure our stock levels are at the highest levels we have ever had.”
Kelvyn added: “While the costs in shipping have increased since the start of the year, at the moment I have no plans to pass those added costs onto our customers.”
