Malaysian-based company Karex Bhd has warned consumers that condoms will now cost much more due to supply chain disruptions brought by the current Iran war.
The company, which is the world’s top condom producer, is looking to increase prices by 20% to 30%, a figure which is expected to surge if chain disruptions persist for the foreseeable future.
‘We have no choice’
Karex Bhd’s CEO Goh Miah Kiat told Reuters that the company’s inundated by requests for condoms as rising freight costs and shipping delays have drained many of its customers’ stockpiles.
The situation is definitely very fragile, prices are expensive…We have no choice but to transfer the costs right now to the customers.”
Reuters reported that Karex produces over 5 billion condoms each year and supplies its products to major brands like Durex and Trojan, as well as the UK’s National Health Service (NHS).
Goh added that since the start of the war in February, Karex experienced costs increase for synthetic rubber and nitrile used in manufacturing condoms to packaging materials and lubricants such as aluminium foils and silicone oil.
Karex Bhd isn’t alone in facing these challenges as several companies are also dealing with chain bottlenecks and procurement of raw materials being disrupted.
Goh said shipments to Europe and the US are also seeing longer arrival times, with shipments taking close to two months compared to a month previously.
“We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” he explained.
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