First of all, let me explain what is Strait of Hormuz. The Strait of Hormuz is a narrow, strategically important strait between the Gulf of Oman in the southeast and the Persian Gulf. 35% of world’s seaborne oil shipments pass through the strait.
So, if Iran close Strait of Hormuz, what would happen to the LED Down Lights business? As we all the know, China produce 80% of all the LED Down Lights throughout the world. And Strait of Hormuz is the most strategically important choke points of the world LED Down Lights business. So, if Iran really close Strait of Hormuz, a hugh percent of the shipments would be influenced by that. So, will this be a disaster for LED Down Lights business?
The Anser is a firm “No”. Actually, 95% of the LED Down Lights are sent by air shipping, even couriers like DHL. As LED Down Lights are used for a lot of new buildings, so, even the cost for air shipping is not low, but for the LED Down Lights business, the delivery time is the most important thing. As far as I know, some top level LED manufacturer like Eneltec Group, after you do the payment, it takes less than 3 days that some best seller LED Down Lights would be in front of you. Why Eneltec could be so fast? First, Eneltec have 19 production lines with more than 300 works, Second, Eneltec is a VIP customer of DHL. Third, Eneltec invest 2 million dollars to build up the best ERP System, make the whole selling system work efficiently.