Dear customers and partners,
In this week’s communication, I would like to wish you a Merry Christmas and a Healthy and Safe 2021. This year’s Holiday Season will be different for all of us but I wish you a peaceful and relaxing time with your loved ones. I would also like to take the opportunity to thank you for your loyalty and support as a valued Customer of Jacobi during 2020. We fully realize that we cannot take your support for granted and we look forward to continue serving you in the years to come.
In the past week, we also thanked our own Jacobi team for staying strong during the challenges of 2020. We organized a virtual worldwide Christmas event in which we connected as a global team and celebrated diversity and success; during the event, we shared 10 videos from different Jacobi teams around the world, we had an inspirational performance of the concert violin player from Slovenia Miha Pogacnik and we played JACOBINGO hosted from Stockholm.
Ocean Freight challenges
Unfortunately, the challenge in Ocean Freight remains. Although there have been some small reduced delays to shipping on some routes from India, delays out of Sri Lanka have increased due to the ongoing congestion at Colombo port. North Americas and Australia continue to be the destinations in most difficulty. Below is the weekly update of the matrix showing the scale of risks of delays on the various regional routes from our Asian factories:
Delays must be expected on all shipments, with overall transit times being extended by the cumulative delays in finding vessel space, hold-ups in transhipment and slower handling at receiving ports.
Please check for current best advice of possible impact on any open orders with critical timing and anticipate delays and longer transit times when making future orders. Global Supply Chain will work in a close team effort with the sales regions to make sure that all available vessel space is prioritised to the most time critical orders.
In terms of shipping cost, most routes show further increases from last week, with the main change from last week being more cost increases to Europe and on most routes from Vietnam:
Although it increases the freight cost per Metric Tonne, we are splitting some loads into 20’ containers to be shipped separately in order to reduce supply delays caused by the lack of 40’ containers and meet our Customers’ needs.
Costs for December are included as the latest now being quoted by shipping lines – these will continuously change – revised tables will be issued weekly. More detailed information on individual routes can be provided on request.
It will continue taking a very close X-functional team effort between the Customer, Sales, Customer Service, Logistics and the Supply Chain teams (both regional and global) in order to get through this challenging period. Let’s make sure we serve our Customers in the best way possible!
Wishing you a peaceful & relaxing Holiday Season!
Thank you for your continued support.
Stay safe and take good care,
Remko Goudappel CEO
Jacobi Carbons AB