Global polymer trade impacted by rising freight rates

Sharply increasing freight costs are reported to be creating obstacles to global polymer trade- several sources complain that the volume of their shipments has fallen, and sellers complained that rising costs are forcing them to take a firmer stance on their prices, as per ChemOrbis. International freight companies announced large freight rate increases for March in a bid to restore margins. Shipping companies in Europe have already announced additional significant freight increases for April after achieving most of their rate increase targets for March. A trader offering Chinese and South Korean PET to overseas markets complained of having trouble maintaining competitiveness owing to rising freight costs. “Sales to some of our regular destination countries such as Russia and Brazil have fallen recently as rising freight rates have made it more difficult for us to offer at competitive prices in these markets,” the trader complained. Another trader importing PP and PE to the Turkish market also complained of facing greater difficulties in deal conclusion owing to the rise in freight costs. “Our shipments from Singapore to Turkey are down by around 20% when compared with the past month because of the increase in freight costs,” the trader complained. In addition to complaints about reductions in volume, several sellers commented that rising freight costs are putting pressure on them to raise their prices even in the face of less than lackluster demand. A source at an Indian PP producer told ChemOrbis, “We are coming under pressure to raise our export prices as rising freight rates have driven our costs higher.” A Turkish trader importing Asian ABS and PS cargoes also complained of facing additional cost pressures following the significant increases seen in freight rates. “Higher freight costs have made us less willing to give discounts on our prices,” the trader commented. Another Turkish trader importing PET cargoes from various countries added, “Our prices are coming under upward pressure due to the recent increases in freight rates.”
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