Karex is a supplier to leading brands such as Durex and Trojan. The Malaysia-based firm produces more than five billion condoms annually.
The condom producer plans to raise prices by 20-30 per cent and it could be raised further if there are continued supply chain disruptions, the producers chief executive, Goh Miah Kiat said.
“The situation is definitely very fragile, prices are expensive ... We have no choice but to transfer the costs right now to the customers,” Goh said in an interview with Reuters. Karex is currently seeing an increase in demand of condoms as shipping delays has caused many of their customers to have lower stock than usual.
Karex joins the growing list of companies to be effected by the war in Iran. Companies including medical glove makers have been impacted as the war has strained energy and disrupted procurement of raw materials.
Karex chief executive stated that the company has enough supplies for the next few months and was "looking to boost output to meet growing demand, as global stockpiles of condoms have dropped significantly following deep spending cuts in foreign aid, particularly by the US Agency for International Development last year."
Karex's shipments are currently taking up to two months to arrive, this is compared to the standard one month waiting time. “We’re seeing a lot more condoms actually sitting on vessels that have not arrived at their destination but are highly required,” Goh said.
He continued to say that a lot of developing countries are low on stock as it is taking longer for their shipments to reach them.
Global oil supplies have noticed an increase in disruptions since Iran responded to the US and Israeli airstrikes along with threats to target vessels in the Strait of Hormuz. This has closed the waterway that companies rely on to transport products. Around a fifth of the world's crude oil and liquified natural gas aswell as other petrochemicals passes through the strait.
In an interview with Bloomberg, Goh explained the need for condoms in times when there is a lot of uncertainty in the world. He said: "In bad times, the need to use condoms is even more because you're uncertain with your future, whether you'd still have a job next year. If you have a baby right now, you'll have one more mouth to feed."
