Blog

One of the most important trade routes in the world, the Suez Canal, has been the site of increasing ship attacks. The current supply chain crisis is resulting in many suppliers choosing to re-route shipments almost 4,000 miles around the Cape of Good Hope. This global decision - combined with the drought conditions in the Panama Canal - has led to a substantial rise in container delays and shipping costs.

Rierden Chemical is working closely with our international logistics partners to mitigate the impact of these delays and cost increases. We are diligently working to increase our stock levels to provide the flexibility we will likely need in the near term, as we appear to be on the verge of what could be another international shipping crisis, like 2020.

In response to the crisis, we are dedicated to informing our business partners of the challenges that are occurring in the supply chain and our plan to mitigate the impacts. First and foremost, we must make aware the challenges we are seeing, extended shipping times and increased ocean rates. By working with our international shipping partners, we have devised a plan forward; to maximize efficiency and secure the most cost-effective imports to our US warehouses. Rierden has taken additional measures to adequately stock inventory levels to provide the maximum number of shipping solutions to our supply chain.

However, we do expect longer lead-times on inbound containers, which could lead to longer lead-times for our customers. With this in mind – we ask for as much forecast and lead-time as possible from our valued customers. Additionally, our ocean rates are seeing a significant increase, and we are working with our customers on how to adjust prices accordingly for new orders.

Rierden Chemical is committed to staying informed of the situation and will provide future updates, if needed. We hope the crises in both the Suez and Panama Canals are resolved in the coming weeks.