Throughout 2021, there have been numerous disruptions across various supply chains, often occurring consecutively or even simultaneously. This year saw a winter freeze in Texas, to two different plants burning down, hurricanes hitting the Gulf causing plant shut downs, and ongoing shortages of drivers creating logistical nightmares to name a few such disruptions.
Below are three different direct impacts the chemical industry is experiencing that will affect you and your business:
Allocation & Force Majeure
Due to natural disasters, staffing shortages, raw import shortages, and plant shut downs, lead times have more than doubled for almost all products. Products sold and transported by the tanker, truck load, and shipping container are facing longer lead times due driver shortages. Read more to learn more about the shortages and lead times.
Container Crisis & Container Shortages
Importing goods is more costly due to several reasons.
- There is a shipping container shortage.
- Shipping containers are stuck at ports due to trucking shortages.
- Some ports are shut down due to staffing shortages, leaving cargo ships anchored at sea for weeks on end.
Due to these interruptions, raw materials are harder to import, causing a shortage in finished goods (chemicals, containers, etc.) As we are seeing costs increase for all products and services, we are seeing large swings in our container costs as well. Read more for additional info and more can be found here about container shortages.
Lead Times & China Power Outage Mandate
The government of China has mandated power outages in an effort to save energy and cut carbon emissions. These power outages halt production for plants within the JiangSu, Zhejiang, Guangdong and other provinces. Shutting down these plants is causing a shortage in chemicals, clothing, and various other goods and raw materials. Read more about the forced shutdown period in China.
What is Twin Specialties Doing?
We look to serve our customer the best way possible. These challenges force us to think differently and try new things. We are continuously looking to expand our relationships with our current suppliers and grow our network of suppliers. This allows us more options to source chemicals that you need at the best price possible. If you are looking for chemicals, fill out the form below and Twin Specialties will help you find the exact product you are looking for.