Rubber Supply Chain Disruption

Price increases

We’re sure it will come as no surprise that the current geopolitical climate is impacting supply chains, including those of the rubber industry. A combination of shortages of the petroleum derivatives used in rubber compound, along with increased fuel costs, means that raw material prices are being pushed up. We are already seeing price increases across the majority of materials, and are expecting this trend to continue in the coming months.

Shipping disruption

Our compound suppliers are seeing bottlenecks in transportation which, in turn, is pushing out lead times for raw materials. Whilst we hold stocks of our higher turnover rubber materials, many of the products we supply do not come from these core ‘standard’ compounds – and it is not viable for us to hold stock of lesser used materials because raw rubber materials can have such a limited shelf life.

We saw similar conditions in 2022 when there was a global shortage of rubber compounds. Whilst the supply chain is not disrupted to the same degree, our advice on how you can mitigate against future supply issues remains the same.

How you can mitigate for supply chain issues

Hold stock: Given that we cannot guarantee to supply within your usual expected time frame, holding a buffer stock of finished goods may provide peace of mind. Whilst raw rubber compound has a shelf life of weeks or months, vulcanised rubber (moulded products) will last at least 5 years, much longer in many cases. Please check the following link for recommended storage conditions and the shelf life of different grades of rubber: storage life of rubber materials

Place a scheduled order: If you are unable to hold stock but can forecast with reasonable certainty, you could provide us with a bulk order to be delivered to schedule. This will allow us to purchase material in bulk, now, for delivery when you need it and at the current cost base.

Allow longer lead-times: For raw materials where the delays are due to temporary reduced availability, the best action you can take is to provide longer delivery windows for us. We would advise 6 weeks where possible.

Pre-warn your customers of delays: If you’re unable to take any of the actions above because you can only respond to demand as it arises, then we urge you to warn your customers of likely delays and look to them to respond to some of the calls to action above.

If you would like to discuss how best to approach your own requirements, please speak directly with your account manager.