Dear customers and partners,
Following the Holiday period, the overall Ocean Freight situation has remained very difficult leading to continued
shipping delays and extremely high costs. The main change since our last update letter is that there is now further
reduced vessel capacity out of the Philippines. North Americas, Australia and UK continue to be the destinations in
most difficulty. We are doing our utmost to secure supply to you as our valued customer. Below is the weekly
update of the matrix showing the scale of delay-risk on the various regional routes from our Asian plants:
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. The Global Supply Chain team 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 and
To illustrate in USD the scale of the cost uplift from Q3 to January 2021, the following table shows the average
increases on the main routes from Asia to the destination regions based on a sample of the most used routes from
the > 400 routes used by Jacobi group in shipping from Asia. Most routes from China have seen further
increases since December, and there are much increased costs out of Vietnam and Philippines, especially to
Europe. (Note: to reflect the continuing high increase on many routes the cost increase scale has changed to have
>300% increase as the top band).
Although it increases the freight cost per Metric Tonne, to reduce supply delays caused by the lack of 40’ containers,
we are splitting some loads into 20’ containers to be shipped separately.
Jacobi group policy is to continue shipping using all available vessel space, despite these high costs, and secure
Costs for January are included as the latest now being quoted by shipping lines – these will continuously change –
revised tables will be issued weekly. Latest information is that the cost out of China to Europe has peaked, but is
likely to increase again after Chinese New Year. More detailed information on individual routes can be provided on
It will take a very close cross-functional team effort between you, our Sales, Customer Service, Logistics and Supply
Chain teams (both regional and global) in order to get through the coming period. Let’s make sure we serve you in
the best way possible!
As we continue to deal with the consequences of the pandemic, our focus remains to become the most Sustainable
Player in the Industry. We prioritize the Safety of our People. That is why we have decided to continue our travel
policy (no travel unless necessary) during Q1 of 2021.
Thanks you for your support and cooperation.
Stay safe, stay strong.
Remko Goudappel CEO