In the last months of 2021, ‘supply chain issues’ have been all over the news. While customers are slowly starting to feel it, businesses in every stage of the supply chain have already felt the impact—and since FIBCs are used to ship all kinds of products, we’re no exception. Let’s look at what’s going on and how you can best prevent products.
What is the problem?
Lead times are substantially longer than you might be used to. We’re talking double numbers, with some orders taking up to 120 days for some to be fulfilled.
The problem doesn’t seem to be solved soon, which means businesses all across the globe have to plan even better and tighter than usual. Ongoing updates and conversations with your FIBC supplier will help you get a realistic view on what’s possible and what steps to take—especially when it comes to custom bag orders.
What’s causing the supply chain issues for FIBCs?
It’s a mix of reasons, but the problems started in March 2020 with lockdowns, although it didn’t stop there.
- COVID-19 reduced demand for products initially, but after restrictions were lifted, this picked up again and grew harder than producers could keep up with. The lockdowns also meant that some manufacturing plants were closed or had limited capacity, meaning they simply couldn't produce as much as usual.
- Then the snow came to the US. Outages included almost 90 percent of U.S. polypropylene capacity. The freezing temperatures in Texas put a halt to the resin and plastic manufacturers, causing a shortage of plastic—a big issue for the FIBC industry, and therefore for many other industries.
- And problems continued: in the port of Los Angeles, a crucial port for many operations, containers are stacking up, waiting to be unloaded. The gridlock is caused by a consumer demand that's surging, a shortage of cargo ships and containers—and even a shortage of workers.
Planning is more crucial than ever
Nobody can precisely predict the future, but it’s best to proceed with care. Working with an FIBC supplier who is easy to reach and has feet on the ground where you need it helps. Want to be prepared for 2022? Reach out to find out how we can help.