Dear customers & partners,
Today, we celebrate International Women’s Day and as such we would like to take a moment to recognize the tremendous contribution of our female staff to the success of Jacobi. We would not be where we are today without their skills, hard work, vision, ideas, and leadership. In our efforts to become more sustainable as a company, increasing the level of diversity at Jacobi is important. We look forward to the time when we can celebrate diversity again as we did two years ago in the Philippines, prior to the pandemic (see picture).
Our people at Jacobi continue making a difference on a daily basis and are essential to becoming the most sustainable company in the industry. Despite the positive spirit of the Jacobi team, we do see that the pandemic is taking its toll on some of our teams. That’s why we have decided to implement a survey on stress levels and well-being of our people during the coming weeks. Based on the outcome of the survey, the leadership team will take action on how we can further support our teams dealing with the ongoing impact of the pandemic. We believe it is important to share this with you, since this is a challenge we all face.
Since the last update 2 weeks ago, after its new year holiday, China has resumed exporting. To make up for the holiday down time, its major routes to North America and Europe are for now taking priority in use of containers and vessels. Unfortunately, this has resulted in renewed delays in containers and vessel space being available in India, the Philippines and to a lesser extent in Sri Lanka, so extending shipping times even more and causing further cost increases on routes from those countries. Of the most used routes, North America (west coast) and Australia remain the destinations in most difficulty. Below is the update showing the scale of delay risk on the various regional routes from our Asian plants:
Delays must continue to be expected on all shipments, with overall transit times being extended by the cumulative delays in finding empty containers and/or vessel space, hold-ups in transshipment and slower handling at some 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 Supply Chain teams work in a close team effort with the regions to make sure that all available vessel space is prioritised to the most time-critical and important orders.
To illustrate the scale of the cost-uplift in USD from Q3 of 2020 to February 2021, the following table shows the average (relative) USD increases on the main routes from Asia to the destination regions. The main changes since the last update are further cost increases from India, the Philippines and Sri Lanka.
Based on the vaccination programs and restrictions to contain the spread of the virus across the world, we expect that societies will gradually open up again from Q3 of this year. However, we do not plan to go “back to normal”. We plan to take the lessons learned throughout the pandemic and take our sustainability program as our guideline to get out of the crisis stronger and wiser. We plan to gradually re-start visiting you (provided you allow us to) but we will limit internal travel as much as possible. For all office jobs, we intend to find optimal “hybrid” set ups balancing working from home and working in the office. Thank you for your support and cooperation.
Stay safe, stay strong.
Remko Goudappel CEO