Covid-19 and the effect on feedstock prices and sea freight rates

feedstock prices and sea freight rates

Covid-19 and the effect on feedstock prices and sea freight rates


We are not only facing unusual times due to Covid-19, but also see that it starts to influence our business. In some feedstock indicators, such as non-ferrous metals or polymer, there is a strong increase due to market demand versus availability. One of the key factors is the strong rebound effect of the business in Asia exceeding 2019 figures by average 6-7%. We clearly see that covid-19 has a strong effect on feedstock prices and sea freight rates.

The last couple of months we see strong developments on (sea) freight notations due to a shortage on ship space and imbalance on equipment (containers). This lead to a strong increase at record breaking heights which hasn’t been seen for more than a decade.

In December, we expected the sea freight rates to ease by the end January. Because Asia would prepare for the celebration of the Chinese New Year. However, there still is an imbalance on equipment, failing synchronizing container demand versus availability. Supply chain system problems with ocean and/or feeder vessels are to be well connected. This results in delays in the delivery.

HEC-Holland is doing the very best to make sure the market demands cover your production requirements. Nevertheless, at this stage we cannot predict how prices and rates will develop in the future. It will certainly be a dynamic half year. We will stay in contact with you on how we can assist you in any way. At this moment we are unfortunately forced, due to the unstable market conditions, to call for a “Freight Adjustment Surcharge”. All depending on the type of product. We will do our best to minimize costs and prices for you.

More information?

For more information, please contact your account manager. They can tell you how we can secure our joint business and how it might effect the commercial conditions. Of course, we try to minimize costs. We do have to be realistic under the present circumstances which count for all parties.

Wire 2020 Düsseldorf (rescheduled)

Wire 2020 HEC-Holland and Hanwha

HEC Holland at Wire 2020 Düsseldorf

Due to the succes of our previous visits to the Wire in Düsseldorf, HEC-Holland will again be present at the Wire 2020 Dusseldorf. This edition we will be present at the booth of Hanwha Chemical, Deuk Young and Shanghai Wangxun.

The world’s biggest and most important forum of the industry’s experts – Wire 2020 – will present itself in Düsseldorf as the hub of the trade from 30th March – 3rd April 2020.

Hanwha chemical

Hanwha is pleased to announce that they are investing in their production facility of XLPE compounds. This will be completed by the end of 2021. This will lead to more production capacity for one of their core products. Also, Hanwha will implement a new automatic warehousing system. A big advantage of this development will be that this will improve the reduction on possible cross contamination.

Developments of Shanghai Wangxun & Deuk Young

Shanghai Wangxun is eager to visit the Wire in Düsseldorf. They have very interesting new product(ion) developments, which they will present at the fair. Deuk Young, another one of our suppliers, will also be present in Düsseldorf and present the latest developments in their production lines.

Wire Düsseldorf offers many key companies in the Cable and Wire Industry who will attend as exhibitioners on the trade fair. There are plenty of reasons to visit Wire and visit our stands and get the latest product and market updates!

Please get in touch with your account manager or our office for more information. We look forward to meet you at the Wire in Düsseldorf.

Wire 2020 HEC-Holland and Hanwha 2

Team HEC-Holland is present at:

Hanwha Chemical | Hall 1 – stand B71
Deuk Young | Hall 10 – stand B68
Shanghai Wangxun | Hall 11 – stand D54

Due to the Corona virus, the Wire 2020 has been moved to 7-11 December 2020.