Outlook on the post-pandemic
400,000 kilometers TBR tire is ready
July 1, 2021
The Birth Of New Tires Seems To Break The Tradition
November 18, 2021The COVID-19 pandemic has caused an unconventional recession, and we do not expect the recovery will be typical either. While the paramount policy goals are to control the virus, get to full employment, and make the necessary investments for a more resilient and inclusive recovery, economic uncertainties and risks demand careful attention going forward. The following may help you with your decision on your purchasing plan.
1.) Supply Chain Disruptions & Misalignments.
For example, the production of tires has been curtailed at times, especially in factories in countries where the pandemic has hit hard, which has resulted in the short supply in global tire market.
2.) Transportation Costs
Ground, air, and ocean transportation costs have also risen significantly as cargo logistics have become more difficult. The backlog at many ports worldwide will make shipping industry even worse in the near term and in the months to go, and there is no sign showing the freight rate could go down.
3.) Pent-Up Demand.
As more people get vaccinated throughout the year, all walks of life would gradually get more active, demand for all kinds of goods including tires could surge and temporarily outstrip supply, which might prompt suppliers to raise commodity prices, the tension in shipping industry would get severer, and the shipping cost could probably keep climbing.
To wrap up, the earlier you place orders and have your orders shipped, the more you will save on goods and shipping, and the more likely you will maintain your market shares and make the pie bigger. By the same token, not only tires, but many other commodities are and will be re-priced in the market.
1.) Supply Chain Disruptions & Misalignments.
For example, the production of tires has been curtailed at times, especially in factories in countries where the pandemic has hit hard, which has resulted in the short supply in global tire market.
2.) Transportation Costs
Ground, air, and ocean transportation costs have also risen significantly as cargo logistics have become more difficult. The backlog at many ports worldwide will make shipping industry even worse in the near term and in the months to go, and there is no sign showing the freight rate could go down.
3.) Pent-Up Demand.
As more people get vaccinated throughout the year, all walks of life would gradually get more active, demand for all kinds of goods including tires could surge and temporarily outstrip supply, which might prompt suppliers to raise commodity prices, the tension in shipping industry would get severer, and the shipping cost could probably keep climbing.
To wrap up, the earlier you place orders and have your orders shipped, the more you will save on goods and shipping, and the more likely you will maintain your market shares and make the pie bigger. By the same token, not only tires, but many other commodities are and will be re-priced in the market.
