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Getting ahead of the game

Specialist:

Felix Rothuizen

Date:

June 2021

Tags:

COVID-19LogisticsContainer transportavailabilityprices

Getting ahead of the game

Shipping is a precarious business in the best of times. Last year was decidedly not the best of times. While the world is emerging from the setbacks caused by COVID, the effects of the pandemic are still being felt in the shipping world. So far this year, between events both critical and structural, 2021 is looking to be another chaotic year for transport. 

"Global trade stalls"

 

There are numerous reasons for this. Container shortages and even IBC shortages mean that factories can’t ship or even pack their goods timely. Worker shortages have created bottlenecks in both production and moving freight. Vessels are avoiding ports where crews from certain countries are not allowed off board. Fuel prices are climbing again; the election of activist investors to the boards of Exxon and Chevron, and the recent ruling against Shell in the Dutch courts could mean an end to “business as usual” for Big Oil and may prevent fuel prices from falling.

So far, Sirius’s efforts to protect our customers from these challenges have been successful: our knowledge of the markets, customer needs, and long working partnerships with raw material manufacturers (and their suppliers), transporters, and forwarders have allowed us to keep our customers supplied with materials despite the global chaos. However, production difficulties are already affecting the supply of both niche chemicals and common ones, such as palm oil derivatives and cellulose products. More recently the Delta variant of COVID-19 that has been causing so much heartbreak in India has also reached China.

As of this writing China has implemented local lockdowns in Guangzhou to contain the spread of this variant, which could mean that more lockdowns are coming. This is already affecting raw materials prices and availability.

 

We, Sirius will continue to do our utmost to help you keep your business running smoothly, but we need you to inform us of your plans, forecasts, and needs, as far ahead as you can estimate. There is only so much we can anticipate. The more certainty we can have, the better things will go for you.  If you want to secure your supplies, please respond directly to this email and let us know your needs for 2021.

Please, reach out today to get ahead of the situation before it gets the better of your business.

 

© Copyright Sirius International Detergents BV | Sirius International Water Treatment BV

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