As promised, this is to update you on the current situation at Jacobi Carbons and the way we are managing the consequences of the Corona crisis, making sure our people are safe and we serve you in the best way possible. The situation is still very dynamic: Sri Lanka is currently our most impacted country as the Government is enforcing strict lockdowns in the region. Nearly 100 of our employees cannot come to work and we are in the process of testing all our employees. Ocean freight remains a serious issue as delays are still a reality and costs continue to rise.
Ocean freight – reduced vessel availability – delays & increased costs
As reported for the last 3 weeks, the main shipping lines continue to reorganise and consolidate their schedules leading to much reduced vessel availability. This has been causing delays and cost increases on many routes (particularly to the USA , Australia and within South East Asia) and has this week been made worse due to port congestions in several countries, with Colombo, the main port hub in SE Asia currently hit by COVID19-related labor shortages.
Below is the weekly update of the matrix showing the scale of risks of delays and cost increases on
the various regional routes from our Asia factories which only has minor changes from last week. Please check for
current best advice of possible impact on any open orders with critical timing and anticipate longer transit times when
making future orders. Global Supply Chain will work with the sales regions to make sure that all available vessel space
is prioritised to the most time critical and important orders.
Due to continued pressure on our supply chain and the delays on ocean freight, the order book for November and December have been frozen and cannot be changed.
- Currently, Sri Lanka is our most impacted country as the Government is enforcing strict lockdowns in the region: nearly 100 of our employees remain isolated, and we are in the process of testing all our employees. Raw material supply is interrupted, but thankfully our inventory will allow us to run in the coming 2 months.
- In The Philippines, we have detected a 4th positive case this week, but fortunately all the contact traced employees from our 4 cases have tested negative. The charcoal supply continues to be limited mostly due to the transport restrictions and difficulties.
- The situation remains stable in India and all our capital expenditure projects are now progressing smoothly. Last week, we celebrated the opening of our new warehouse at NOVA, one of our 2 plants in India:
- Vietnam, Japan and China currently have COVID19 well controlled, but their borders remain practically closed.
- Overall, we still have the majority of our factories (4 out of 6) running with special long shift arrangements and limited manpower, to ensure social distancing and manage preventive quarantines. Although we are managing to run at almost full capacity, there may be an impact on specific orders which adds up to the shipping delays mentioned above.
- Safety remains our first priority despite the COVID19-related challebges we face on a daily basis.
- Fortunately, we have been able to secure the required raw material volumes as well as the chemicals and consumables to meet your needs and cater for the Supply Chain Risks that will remain in the coming months.
- Germany: we continue to fully operate in Premnitz.
- Italy: we continue to fully operate in Basiano.
- UK: fully operational
- France: is fully operating as well with full staffing, including the AMCA team.
The infection rates in several countries in Europe have increased above critical threshold levels. Therefore, in countries like Spain, France and the UK we have reinforced measures to limit site access and safeguard return to work policies. Although the situation has worsened over the past few weeks, we have no COVID-19 cases and are able to run all our operations at full scale.
Our production facility and warehouse locations remain fully operational, however, at a heightened sense of alert, as regional surges continue to occur. Fortunately, we have no COVID-19 cases at our facilities. We continue our efforts at our facilities to maintain the highest focus on preventive measures to keep our people safe and to safeguard continuous operations. We did have a positive case in the sales force; this person was working from home, but has since then recovered.
As everyone is focusing heavily on controlling the spread of the virus and maximizing our production output to serve our customers, we are maintaining our focus on safety as well. There has been no change to our policy in the past weeks.
Thank you for your continued support!
Stay safe and take good care,
Remko Goudappel CEO
Jacobi Carbons AB