Purchase prices are currently at a high level, but more or less stable. However, as yarn continues to be scarce and thus expensive, further price increases are to be expected.
Unfortunately, also the transport situation has not improved since we first informed you - on the contrary. After a short period of regulation, prices have risen drastically again recently and are now over $11,000/40 FCL for a container from China, for example. Further increases cannot be excluded and are even expected by some.
The main reason for this is the accident in the Suez Canal, which has led to delays in offloading and processing in the ports, thus also blocking free container capacity.
We currently do not expect the situation to ease in the short term. It will take time for all supply chains to get back on track. We do not expect any recovery before July, when the ships have returned.
In summary, the situation remains extremely challenging.
We will keep you informed!
Sadly, even at the beginning of the new year, there is still no significant progress in the fight against the global Corona pandemic.
On the contrary, the Corona pandemic continues to have our producing countries firmly in its grip. As already reported in the news, some provinces in China, for example, had to be completely sealed off again. Factories located there have had to close and truck traffic to the ports has been stopped.
As a result, the import situation and logistics are still proving to be extremely difficult and complex, as the supply chains have largely been interrupted by the pandemic.
In addition, the greatly reduced number of passenger flights and active cargo ships is also drastically reducing the supply of cargo space, leading to even greater strain in the sea freight sector.
The situation in the ports of the producing countries is also precarious, as on the one hand, the freight volume is extremely high, but on the other hand, there is a shortage of containers due to the limited exports from the USA and Europe to Asia. In addition, port workers as well as customs officers can only work in low staffing due to local regulations.
Moreover, there has been a drastic increase in transport costs due to the high demand and the shortage of freight space.
Nevertheless, we at Koppermann will do our utmost to keep the effects of these difficult circumstances away from our customers as far as possible.