Metal market participants have been forced to take creative approaches to ensure they can continue trading amid an intensely challenging freight environment, sources told Fastmarkets.
A global logistics crisis has dragged on through the summer and into the autumn of 2021, highlighted by a continued shortage of vessels and containers, together with port congestion across the globe.
Quarantines related to Covid-19 in Asia have raised freight costs further in the second half of 2021, while natural disasters such as Typhoon Chanthu have caused extra delays. Shipping giant Maersk said in late September that the
global port bottlenecks are unlikely to ease this year.
Fastmarkets reached out to metal market participants ahead of the LME Week, to understand what challenges they face and how they are dealing with them.
Increased delays
The shipping issues are causing two sets of problems: delays in loading times and delivery schedules, and low inventory levels in destination markets, sources said.
Long shipping delays are a big concern for sellers and buyers alike. One trader of refractory minerals said new shipments...