Suez Canal – Global supply chain impact

Evergreen Suez Canal

Global supply chain impact is caused by imbalance in available freight space and equipment.

The supply chain consequences of the Suez Canal blockade in March will be clearly felt in the coming months. In our operations this will mostly affect the operational activities and pricing for the coming period. Where there were hopes for more stability, prices in container shipping are still sky-high. Also the tariff levels may reach new record highs as of May 1. We continue to be confronted with limitations and delays due to blank sailings, equipment shortages and congested ports worldwide.

Partly because of the aforementioned congestion in the Suez Canal, we are also seeing extra pressure in the availability of containers and the spot market. The shortage of ship space and containers will largely persist this year, resulting in high transport rates and operational restrictions. This is predicted by a maritime research firm Drewry in its latest report about developments in the container market. The prospects also note that there will be considerably more orders for the construction of new ships. There are 1.77 million TEU across 166 ships ordered in Q1 only. However, whether this capacity expansion will eventually lead to the extremely low rates of few years ago seems unlikely, according to Drewry.

Our advices to prevent possible inconveniences in your supply chain 

We would like to advise you to pay attention to matters listed below in order to limit any nuisance and to anticipate the aforementioned market situation:

  • We recommend booking your shipments well in advance. This enables us to provide you with the best possible arrangements.
  • Prioritize the most critical shipments as capacity is scarce and we face constraints and delays.
  • Include longer lead times in your supply chain calculations. Keep in mind that the average delay is currently almost 7 days.

The aforementioned challenging and volatile market situation puts a lot of pressure on our operation. Therefore, we must continue to emphasize that the options are limited and ask you to continue to take into account possible delays in the coming period.

We are here for you

We at HEC-Holland do everything we can to continue to serve you optimally and to keep any inconvenience to a minimum. Please feel free to consult your account manager and ask for our possibilities and solutions. We will also keep you updated related to this theme and future developments. 

If any questions arise, please also get in contact with our team!

HEC-Holland LinkedIn

New Year, a New Milestone on Storage Capacity & Production in Goch, Germany

New Year, a New Milestone on Storage Capacity & Production in Goch, Germany
 

After a rollercoaster year our wish is that this year will be the one full of optimism, hope and prosperity for a bright future and supportive atmosphere for all of us.

At HEC-Holland we are starting this year with excitement for new things to come up and plans with our customers and suppliers. Our ambition is to continuously improve ourselves in all aspects in light to give the best support to our partners.

We are proud to share with you an update regarding one of our strategic situated distribution centres at Goch, Germany. With the newly build expansion on warehouse space and production capacity we believe to have entered into a new phase within the HEC-Holland journey.

With this expansion we have now doubled our capacity to approximately 5.000 metric ton on storage space. Supervised by our latest ERP software technology, we are able to continuously keep on track on our production and supply chain system, enabling you faster and effective services. This leads to higher speed and more flexibility in delivery of your well appreciated orders.

At Goch’s production site we also have advanced machines and equipment to tailormade preciously cutting, shaping, packing, labelling and delivery according to your specifications and wishes. At our non-woven department, we are able to deliver 1,30-meter outer diameter pads, which creates flexibility at your production by having less production stops. See the next article about our aluminium converting to take a closer look on how the process on one of the machines is developing.

We are eager to see how we are able to create more value for our customers. The journey of HEC-Holland just started and will not stop here but moves on.

In addition to our German distribution and production location, we have own dedicated warehouse capacity in Helsinki, Finland and Jonkoping region in Sweden.

Stay tuned for more news about this and other topics in the future!

Working visit Hanwha

Hanwha

Yeosu / Seoul, 25th of September 2019

This September HEC-Holland team members made a tour with one of our valuable customers to Hanwha’s premises in South Korea. Main purpose of this trip was to further extend our collaboration with our partner. Additionaly we wanted to show our team members Hanwha’s newest expansion on production of crosslinkable polyethylene (XLPE) at their site in Yeosu -in the South of the Korean peninsula – where the ground-breaking ceremony took place.

XLPE capacity

We are pleased to see that due to this new fully automated production system our XLPE capacity will grow further and will be ready by 2021 ~ early 2022. Along with this expansion Hanwha also will invest into an own automated warehouse especially dedicated for its Wire and Cable products, which will be ready at the same time.
Furthermore has Hanwha Construction Corporation completed nearly the overhaul of Hanwha’s HQ building in downtown Seoul, where the building is ready for the 21st century. It has nice features such as solar panels, which are integrated in the exterior of the building – produced by Hanwha’s sister company Q-Cell.

Focus on Europe

The smooth transport of our valuable customers took place by Hanwha’s own helicopter service which was reserved for this memorable and special occasion. We as HEC-Holland are confident that our partner Hanwha Chemical is ready to further roll out its strategy to strengthen its presence within the Wire and Cable market with a specific focus towards Europe.

Comment or contact?

Do you want to leave a comment on this post or do you have a question? Feel free to contact us!

Disclaimer

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