News – 01.28.2021

Spread of supply bottlenecks widens

No delivery until mid-February?

Against the backdrop of a steadily increasing bottleneck in available freight volumes, the supply situation from Asia is becoming more and more acute. Until the Chinese New Year on February 12, there is no more freight space available in the 40-foot container range. This means that many European companies will only be able to obtain urgently needed goods to a limited extent. After that, the situation is only slightly more relaxed, as the spot market is very volatile, i.e. subject to constant fluctuations.

Freight rates continuously increasing in price

In addition to the shortage of free freight volume, freight rates have been rising continuously for several weeks. Compared to last year, prices have already quadrupled! Since the outbreak of the pandemic, international new shipbuilding has also been significantly reduced, the situation described above will not change in the foreseeable future. The result is a continued risky supply from Asia and a significant increase in freight rates for deliveries to Europe.
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Supply situation raw materials

In recent weeks, more and more raw material suppliers are reporting limited material availability. Orders are confirmed without a fixed and binding delivery date and raw materials are subject to quotas. Delivery times are extended by up to four months, depending on the material.

In the case of rubber compounds and plastic granulates, all market participants assume, similar to steel, an imminent European supply problem, which results from reduced production capacities of the polymer industry, the significantly lower rubber production in the last year, as well as a disproportionately increased demand from the Asian region. For these reasons, we are examining all alternatives and remain in close contact with our suppliers in order to ease the situation.

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