As we plan for the rest of 2021, we are seeing the supply chain continue to tighten rather than ease due to the third wave of COVID-19 hitting many countries. Please see below for some data and news on global transit times and Netchem’s recommendations on supply chain planning.
Planning Recommendations
Whereas in the past a lead time of 4-6 weeks was common for imports from overseas, plan for a lead time of at least 12 weeks. This does not take into account delays in manufacturing on an individual product basis.
This means you should plan now for goods needed August through October.
Please stay in close contact with your commercial representative in order to plan ahead for raw material supply through this very challenging time ahead.
Contact Netchem here
News & Updates on Transit Times
Netchem’s average transit time for goods (from date of shipment to warehouse arrival) has approximately doubled in 2021 (50-60 days) compared to 2020 (34 days). We do not anticipate any decrease in transit times through Q2 or early Q3.
We are seeing increased difficulties booking freight out of India, particularly for dangerous and hazardous goods. The serious rise in COVID cases in India is causing labour shortages and additional delays. We expect production and shipping to experience further disruption as India’s third wave of COVID continues.
The U.S. west coast ports of Los Angeles and Long Beach are facing significant delays in unloading goods due to container congestion, in some cases up to 60 days. This backlog is expected to continue into the summer. (https://www.supplychaindive.com/news/california-port-congestion-los-angeles-long-beach-data/594715/)
Container prices in China and India continue to rise, as the container shortage continues to delay shipments and increase freight prices. (https://theloadstar.com/box-troubles-still-hitting-forwarders-in-china-and-india-as-prices-keep-rising/)