Bottlenecks continue to put pressure on chemical production in Europe, and at the same time, many sources stated that the shortage of truck drivers during the summer months is the main reason for the disruption in this catastrophic supply chain. However, the lack of drivers is not the only factor affecting the sector. Market traders in the European petrochemical industry have described the logistics situation as “terrible”, and there is no prospect of the situation changing in the near term.
One of the traders of polyethylene terephthalate said: (The transportation situation is a disaster. We are in the holiday season and the drivers have gone to their homes. The shipments have increased continuously, and they cancel the delivery of these shipments or move the date or other events ). The businessman acknowledged that if demand was low, the lack of trucks would not cause much concern, but not everyone in the international arena agreed with this view.
One of the producers of polyethylene terephthalate said: (The transportation situation is really terrible. I have worked in America and Asia, and I have not seen such an unreasonable restriction.)
He added: (This is not due to demand, but due to the severe shortage of drivers… They have added salt to this wound with the new European Union transport package.)
Transportation conditions do not affect the sale of polyethylene terephthalate alone. For example, transportation is one of the main factors that have affected the cash and contract propylene oxide markets.
One propylene oxide producer said:( It comes down to shipping. There is no excess shipping capacity, so even if we have material to supply, there is rarely an opportunity to trade propylene oxide in cash.)
Another producer cited high energy costs as another factor for the shortage of drivers, especially those who are self-employed or contract workers. The source said:( Logistics conditions are terrible, and it is getting worse every day. It is not the costs, but the service situation has deteriorated.)
Another source mentioned the lack of drivers as well as the lack of additional capacity; He added that we are also witnessing intermittent delays in the railway line. Problems with the rail line have been widely discussed in the market, as supply and maintenance delays have affected the system’s service, and hot weather has delayed cargo deliveries.
Road congestion isn’t the only issue disrupting the supply chain, while low water levels on the Rhine mean cargo ships won’t be able to carry as much cargo, making it an inefficient alternative to trucks.
Chemical companies have invested heavily in designing cargo ships that can handle these conditions, but so far no solution has been provided to cope with this high volume of traffic.
Ports are also under pressure from a labor perspective, as port and dock workers have recently gone on strike for higher wages, which could increase unloading times or put pressure on costs in the long run.
The traffic of ships and terminals is still very high, and at the same time, one of the methanol producers made comments regarding the impact on the industry.
One of the sources at the shipping terminal said: (The terminal used to be very crowded and this situation is still there. We faced a lot of delayed work, but recently the situation has improved to some extent, but we do not know when this situation will be completely resolved.) The source added: “The methanol market is not the only active market. Other markets such as ethanol and styrene are experiencing similar conditions. I have been in this business for 37 years. What I have seen in the last few weeks is unprecedented, and I am not sure. How long will it take for the problems to be completely resolved.) Transportation conditions do not affect the sale of polyethylene terephthalate alone. For example, transportation is one of the main factors that have affected the cash and contract propylene oxide markets.
One propylene oxide producer said: ((It comes down to shipping. There is no excess shipping capacity, so even if we have material to supply, there is rarely an opportunity to trade propylene oxide in cash.)
Another producer cited high energy costs as another factor for the shortage of drivers, especially those who are self-employed or contract workers. The source said:( Logistics conditions are terrible, and it is getting worse every day. It is not the costs, but the service situation has deteriorated.)
Another source mentioned the lack of drivers as well as the lack of additional capacity; He added that we are also witnessing intermittent delays in the railway line.
Problems with the rail line have been widely discussed in the market, as supply and maintenance delays have affected the system’s service, and hot weather has delayed cargo deliveries.
Road congestion isn’t the only issue disrupting the supply chain, while low water levels on the Rhine mean cargo ships won’t be able to carry as much cargo, making it an inefficient alternative to trucks.
Chemical companies have invested heavily in designing cargo ships that can handle these conditions, but so far no solution has been provided to cope with this high volume of traffic.
Ports are also under pressure from a labor perspective, as port and dock workers have recently gone on strike for higher wages, which could increase unloading times or put pressure on costs in the long run. The traffic of ships and terminals is still very high, and at the same time, one of the methanol producers made comments regarding the impact on the industry.
One of the sources at the shipping terminal said:( The terminal used to be very crowded and this situation is still there. We faced a lot of delayed work, but recently the situation has improved to some extent, but we do not know when this situation will be completely resolved.) The source added: “The methanol market is not the only active market. Other markets such as ethanol and styrene are experiencing similar conditions. I have been in this business for 37 years. What I have seen in the last few weeks is unprecedented, and I am not sure. How long will it take for the problems to be completely resolved.) Transportation conditions do not affect the sale of polyethylene terephthalate alone. For example, transportation is one of the main factors that have affected the cash and contract propylene oxide markets.
One propylene oxide producer said: (It comes down to shipping. There is no excess shipping capacity, so even if we have material to supply, there is rarely an opportunity to trade propylene oxide in cash.)
Another producer cited high energy costs as another factor for the shortage of drivers, especially those who are self-employed or contract workers. The source said:( Logistics conditions are terrible, and it is getting worse every day. It is not the costs, but the service situation has deteriorated.)
Another source mentioned the lack of drivers as well as the lack of additional capacity; He added that we are also witnessing intermittent delays in the railway line.
Problems with the rail line have been widely discussed in the market, as supply and maintenance delays have affected the system’s service, and hot weather has delayed cargo deliveries.
Road congestion isn’t the only issue disrupting the supply chain, while low water levels on the Rhine mean cargo ships won’t be able to carry as much cargo, making it an inefficient alternative to trucks. Chemical companies have invested heavily in designing cargo ships that can handle these conditions, but so far no solution has been provided to cope with this high volume of traffic.
Ports are also under pressure from a labor perspective, as port and dock workers have recently gone on strike for higher wages, which could increase unloading times or put pressure on costs in the long run.The traffic of ships and terminals is still very high, and at the same time, one of the methanol producers made comments regarding the impact on the industry.
One of the sources at the shipping terminal said:( The terminal used to be very crowded and this situation is still there. We faced a lot of delayed work, but recently the situation has improved to some extent, but we do not know when this situation will be completely resolved.) The source added: “The methanol market is not the only active market. Other markets such as ethanol and styrene are experiencing similar conditions. I have been in this business for 37 years. What I have seen in the last few weeks is unprecedented, and I am not sure. How long will it take for the problems to be completely resolved.)