Supply Chain Update

To keep you informed on all factors that could affect your bulk bag supply, we have listed below several global issues that are beginning to affect our supply chain.

Three significant issues affecting ocean trade currently are:

  • Panama Canal drought leading to low water levels, causing a 40% reduction in canal passings per day
  • Attacks by Houthi rebels in the Red Sea have caused shipping lines to avoid this area, opting to divert vessels around the Cape of Good Hope
  • Continued wars in Ukraine and Israel and overall global unrest

As a result of these issues, we’re now receiving ocean rates that have increased nearly 70% since Jan 1, 2024. We are also seeing added contingency fees to account for additional security risks, vessel replanning, peak season surcharges, etc.

So far, we have not seen any increases in the domestic portion of the transit (drayage), but that could be expected soon as petroleum companies are avoiding the Red Sea, which could cause a 5-10% increase in gas prices. We’ve also been warned of equipment displacement as transit times have increased by 20% in the last two weeks. This will lead to less availability of containers and possible blank sailings.

Please do not hesitate to reach out to your sales representative or to us at if you have any questions.


GIVE US A CALL AT 205-620-9889

Physical address

Helena Industrial Park
545 Elm Street
Helena, AL 35080

Mailing address

P.O. Box 580
Helena, AL 35080

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