Lack of raw materials is globally affecting various industries

Companies that need to import raw materials from countries such as China are experiencing particularly challenging times, with consecutive delays in deliveries of goods and the rising costs of maritime freight. In general, the pandemic affected various countries at a global level, and it has triggered this context which has been going on for several months, and a resolution is not yet to be expected.

This impact is felt in various industries, with a special expression in activities such as metalworking, metallurgy, construction and food, but it also affects – directly or indirectly – to many others.

China is a highly requested market for shipping various raw materials. The lack of containers which, due to the pandemic, were delayed in reaching their destination is causing delays in the shipment of products and leading to various situations of overbooking. But the difficulties are not just because of this situation. The economic recovery in the Chinese market – which happened earlier than in most other countries – has meant that it is absorbing a large part of the raw materials it exported.

Overall, this whole scenario has increased maritime freights which continue to rise and even with all the efforts on the part of logistics and shipping companies to try to minimize situations, it is escaping their control.

There are raw materials which have had a steep rise. “At this moment, the issue of the brutal increase in the cost of raw materials and transport is reaching difficult levels”; said the vice-president of the Association of Metallurgical, Metalworking and Related Industries of Portugal (AIMMAP) on this topic. There are products which had a price increase of 100% or more. Maritime freight is also more expensive – with very considerable increases.

In the textile and footwear sector, with strong expression in the national market, the lack of raw material is threatening the normal work of companies.

At Extra Transportes, we continue to monitor the impact that this whole context is having on maritime transport, by staying right by of our customers trying to minimize the constraints, given the current reality.