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 stabilising in Asia: in Sri Lanka, most team members are back to work, and in India and the Philippines there are no COVID19-cases. In France, there is only one COVID19-case and the plant is running normally. We currently have 2 people in the Columbus OH plant (USA), who have tested positive for COVID19. Both have been quarantined, contact tracing has been done and we have taken the necessary steps to safeguard production. Ocean freight remains a serious issue as delays continue to be a reality and costs continue to rise.
Ocean Freight & Order prioritisation
The lack of enough ocean freight vessel availability continues to cause delays and cost increases on many
routes (particularly to the USA, Australia and within South East Asia). 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 – the main changes are:
- Continuing upward cost trend on most routes.
- Ongoing difficulties and delays in shipping from India and Philippines to North America, particularly on the West Coast.
- Delays resulting from port congestion are reducing into Australia but increasing into the UK.
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.
Order planning for the last two months of 2020 has now been fixed and no further postponements of orders scheduled to ship in November and December can be accepted.
- In Sri Lanka, most of the 100 quarantined people are back to work: only 20 people remain in their locked-down districts. However, the country sees an increasing number of cases and we are working on contingency plans for our operations and for the accommodation of our workforce if lock-downs were to be extended.
- Our two factories in India are running at full capacity, but have to remain very careful as the country enters the Diwali holiday. We ask all our employees and partners to celebrate the festival of lights with a lot of precautions!
- In Philippines, we have had no new case and our operations are running normally, the main impact of COVID19 is currently on the supply chain securing raw material supply.
- Our Vietnam factory celebrated its 10th anniversary last week-end (see pics)! Congratulations! Although without any foreign visitors this time, we were happy that our local team had a simple and joyful celebration. As Vietnam has COVID19 fully under control, people do not have to wear masks any longer.
- In China, following a few detected cases in the city of Tianjin, the alert level has been increased. It doesn’t affect our operations but more stringent rules are being applied on drivers and on contractors working on our site.
- The coconut charcoal production and supply continue to be limited due to COVID19 situation in Philippines, Sri Lanka and Indonesia. Although the availability in India and Vietnam is better, overall the prices remain at a very high level.
- Germany: we continue to fully operate in Premnitz.
- Italy: we continue to fully operate in Basiano.
- UK: fully operational
- France: we have 1 actual COVID19 case at JCF. The employee is at home waiting for quarantine to end. Vierzon
plant is fully operational.
The infection rates in several countries in Europe have increased above critical threshold levels. In several European countries, lock-downs have been implemented. Therefore, in countries like Spain, Germany, Italy, France and the UK we have reinforced measures to limit site access, restricted domestic travel to customers again and safeguard return to work policies.
Our production facility and warehouse locations remain fully operational, however at a heightened sense of alert, as regional surges continue to occur. We currently have 2 people in the Columbus plant, who have tested positive for COVID19. Both have been quarantined, contact tracing has been done and we have taken the necessary steps to safeguard production.
We have initiated precautionary testing of at-risk personnel when appropriate, as a component of our continued efforts to maintain the highest focus on preventive measures at our facilities, to keep our people safe and to safeguard continuous operation.
As everyone is focusing heavily on controlling the spread of the virus and maximising 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