What Should We Do on Raw Material Prices and Shipping Cost are Soaring?

The industry related to Metal and gaslines is affected tremendosly these days because of the inquiry world. The raw material price, shipping cost everything is raised. For us, we collected the metal sheet, the base cost is add about 30% already.  Not just us, the big company like Tesla, they did decided to raise the car price as well. Please take care of ourselves. The doom will get the end soon.

A. About Raw Material (Raw Material Price Raising Reason)

Uh-oh. Metal prices have remained tense, with markets around the world remaining unsettled.

According to recent reports, critical metal shipments are stranded in Ukraine and Russia. This is causing many delays for companies that rely on the materials for their products, such as Tesla. The company announced that it will have to raise prices for the second time in less than a week due to uncontrollable inflation and transportation costs.

Tesla relies on Russian aluminum to supply millions of dollars worth of metals. However, prices for these metals like aluminum, palladium, and nickel have soared. And Tesla’s not the only company feeling the pain: Toyota, Ford and other manufacturers are feeling it too

Tesla is not the only company to suffer from this war. It’s just one of many, stark examples. All industries are affected by this war.

Natalie’s view: As the common people, could not make the judgement on that world issue. And you can’t change the environment, you can only change yourself to adapt to the environment.

 

So what should we do:

  •   1. Pay close attention on the material price trends.
  •    2. Doing the stocking inventory reparation plan.
  •    3. Unit all of colleague together. And keep hope. We would be fine in the end.

B: MSC annouced shipping cost raising:

The Russian-Ukrainian conflict has drastically raised fuel prices, and ocean carriers are responding with higher surcharges.

This week, MSC announced it will adjust bunker fuel surcharges every two weeks instead of monthly or quarterly. This means shippers will continue to bear the burden of rising costs and will make the global shipping industry even more unstable. The supply chain crisis will worsen.

msk shipping 1
msk shipping 1

Starting on December 20th, all 20′, 40′ Dry Van (DV), and High Container (HC) containers will be subject to increased rates.

shipping cost 1
shipping cost 1

MSC has set new rates for shipments from Genoa, La Spezia, Antwerp, and Bremerhaven to the US. Specifically, the carriers will apply an increased FAK (free alongside ship) rate to shipments heading to New York and Long Beach.

shipping 1
shipping 1

In a word, it is better to make a good shipping plan in advance.

 

Thanks, this is MetalNana

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