The global supply chain is currently facing an unprecedented crisis in Asia, including Singapore. Shipping delays have skyrocketed, causing widespread disruption across supply chains worldwide. Businesses and consumers should be prepared for significant price hikes as the supply chains continues.
How does this affect the tile manufacturing sector? Let’s explore deeper into the recent events that unfolded.
Biden’s China Tariffs
A couple of weeks ago, United States President Joe Biden has announced to impose a steep increase in tariffs on a huge range of Chinese Imports. This bold move is intended to correct unfair Chinese trade practices, which will provide support for U.S. domestic and allied supply chains.
Chinese Reaction
The new tariff law has caused Chinese exporters to be in a frenzied race to ship goods before the tariffs take effect, which has resulted in an overwhelmed and strained supply chain. The sudden huge rise in Chinese exports has nonetheless resulted in severe congestion at major ports, like Singapore.
Impact on Singapore’s Ports
The Strait of Malacca, which is a critical route for global trade, has been swamped with traffic. Singapore, a pivotal docking hub along this route, has been greatly affected by the congestion.
Channel News Asia (CNA) has reported a remarkable increase in vessel arrivals in Singapore’s port. In May, the port has received 1000 ships which is nearly double the 639 ships recorded in April. This substantial increase underscores the urgency and scale of the situation, which businesses needs to be prepared for.
CNA has also shared that in the past, vessels usually only require a day or two to dock at Singapore’s port. However, today, it is taking a week for each vessel to berth. The extended time at sea, is causing a shortage of ships and container equipment. According to CNA, analysts believe that the situation could last for several months, impacting neighbouring ports in Asia as well.
Businesses To Brace For Extended Shipments Delays
In a recent interview with CNA, Tan Hua Joo, a Container Shipping Marketing Analyst at Linerlytica, shed light on the severe congestion at Singapore’s ports. Tan highlighted the critical insufficient capacity to handle the surge in cargo volumes, stressing that the situation is likely to persist. Additionally, Tan has urged businesses to brace for extended cargo shipments delays over the next few months.
What Does It Mean For The Tile Industry?
The ongoing supply chain disruptions is causing ripples in various sectors, including the tile manufacturing industry. Since tile manufacturers rely heavily on sea freight for tile transportation, any shipping disruptions will have a significant impact on the business as well as its customers. These impacts may encompass financial strain from increased shipping costs, potential delays in tile deliveries, and the hindrance of project timelines.
While the outlook for the supply chain remains uncertain, Heritage Ceramics is committed to being proactive and adaptable in addressing these challenges. Amidst this crisis, Heritage Ceramics will maintain its resilience and forward-thinking approach. We will keep our customers always informed about any shipping related updates.
*This article is referenced from several reputable news sources, like Channel News Asia (CNA).
Source: Channel News Asia
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