It’s been a wild couple of months in the supply chain since our last update in June.
As reported previously, the Red Sea Crisis of late 2023 has led to some trying times in the supply chain, most of which continue to worsen. Displaced equipment, longer float times, booking delays, rejected bookings, increasing shipping costs, etc., continue to affect our import containers. Fortunately, we’ve not seen rates increase to the “pandemic level” as previously reported, but we continue seeing bookings at double the rates from Jan 1, 2024.
On the production side, delays associated with the current labor shortages in India, yet to recover from “wedding season,” “hot season,” and elections, continue to affect production capacity. These labor shortages have led to significant production delays throughout India. We’ve also seen a recent surge in FIBC demand from both the U.S. and European markets in Q3. The increased demand is outpacing India’s FIBC capacity with the ongoing labor shortage. We’re now facing an average lead time that has slipped from 103 to 150 days in only three months.
The most significant threat continues to be the looming East Coast/Gulf Coast port strike, which will affect 36 coastal ports that account for 43% of U.S. imports and is now reported as “almost certain.” Sea intelligence estimates that a one-day strike could lead to a six-day backlog, while a two-week strike would delay operations into 2025. Experts predict the strike will last two to four days, with possible intervention by the White House.
Please know that we are closely monitoring all these situations and making the necessary adjustments to our supply chain to ensure minimal downstream impacts for our customers.
If you have any specific questions or concerns about your inventories, don’t hesitate to contact your sales rep for more information.
As reported previously, the Red Sea Crisis of late 2023 has led to some trying times in the supply chain, most of which continue to worsen. Displaced equipment, longer float times, booking delays, rejected bookings, increasing shipping costs, etc., continue to affect our import containers. Fortunately, we’ve not seen rates increase to the “pandemic level” as previously reported, but we continue seeing bookings at double the rates from Jan 1, 2024.
On the production side, delays associated with the current labor shortages in India, yet to recover from “wedding season,” “hot season,” and elections, continue to affect production capacity. These labor shortages have led to significant production delays throughout India. We’ve also seen a recent surge in FIBC demand from both the U.S. and European markets in Q3. The increased demand is outpacing India’s FIBC capacity with the ongoing labor shortage. We’re now facing an average lead time that has slipped from 103 to 150 days in only three months.
The most significant threat continues to be the looming East Coast/Gulf Coast port strike, which will affect 36 coastal ports that account for 43% of U.S. imports and is now reported as “almost certain.” Sea intelligence estimates that a one-day strike could lead to a six-day backlog, while a two-week strike would delay operations into 2025. Experts predict the strike will last two to four days, with possible intervention by the White House.
Please know that we are closely monitoring all these situations and making the necessary adjustments to our supply chain to ensure minimal downstream impacts for our customers.
If you have any specific questions or concerns about your inventories, don’t hesitate to contact your sales rep for more information.